Chapter

APPENDIX IX Financial Statements April 30, 2001

Author(s):
International Monetary Fund
Published Date:
September 2001
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Auditor’s Report

To the Board of Governors of the International Monetary Fund

In our opinion, the accompanying balance sheets and the related statements of income, changes in resources and cash flows give a true and fair view of the financial condition of the General Department and the SDR Department of the International Monetary Fund (the “IMF”) as at April 30, 2001 and 2000, and their respective results of operations and cash flows for the years then ended in conformity with International Accounting Standards. These financial statements are the responsibility of the IMF’s management; our responsibility-is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with International Standards on Auditing, which require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

As discussed in Note 2 to the financial statements, effective May 1, 1999, the IMF adopted International Accounting Standard 19, “Employee Benefits” prospectively impacting the accounting for pension and other retirement benefits.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on pages 188 to 193 and 198 to 203 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplementary’ information has been subjected to the auditing procedures applied in the audits of the financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the financial statements taken as a whole.

June 6, 2001

General Department

Balance Sheets as at April 30, 2001 and 2000

(In thousands of SDRs)
2001200020012000
AssetsLiabilities and Resources
Credit outstanding42,219,06143,912,822Liabilities:
Usable currencies109,654,428105,500,280Remuneration payable394,281464,152
Other currencies56,030,97355,875,571Other liabilities147,88384,541
Total currencies (Notes 3 and 4)207,904,462205,288,673Special Contingent Account (Note 10)1,213,0191,119,019
Total Liabilities1,755,1831,667,712
SDR holdings2,436,7442,723,892
Members’ Resources:
Gold holdings (Note 5)5,851,7715,851,771Quotas, represented by:
Reserve tranche positions (Notes 2 and 4)46,732,98648,871,519
Receivables (Note 6)561,562688,119Subscription payments: Usable109,654,428105,500,280
Other56,027,48655,879,601
Other assets (Notes 7 and 14)696,043471,691Total quotas212,414,900210,251,400
Assets of the Special Disbursement AccountReserves of the General Resources Account3,280,4993,105,034
Investments (Note 8)2,405,9282,256,089
Structural Adjustment Facility loans (Note 3)432,526511,638Accumulated resources of the Special Disbursement Account2,838,4542,767,727
Total Assets220,289,036217,791,873Total Liabilities and Resources220,289,036217,791,873
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
/s/ Eduard Brau/s/ Horst Köhler
TreasurerManaging Director

Income Statements for the Years Ended April 30, 2001 and 2000

(In thousands of SDRs)
20012000
Income of the General Resources Account
Operational Income
Interest and charges (Note 6)2,207,1002,498,904
Interest on SDR holdings112,514123,288
Other charges and income68,69949,119
2,388,3132,671,311
Operational Expenses
Remuneration and financing costs (Note 9)1,734,2941,826,817
Allocation to the Special Contingent Account94,000128,456
1,828,2941,955,273
Administrative Expenses (Note 13)384,554448,376
Net Income of the General Resources Account before effect of change in accounting method175,465267,662
Cumulative effect of change in accounting method (Notes 2 and 14)268,262
Net Income of the General Resources Account175,465535,924
Income of the Special Disbursement Account
Investment income150,02730,088
Interest on SAF loans1,3892,164
Placement of profits from gold sales (Note 5)2,226,000
Net Income of the Special Disbursement Account151,4162,258,252
The accompanying notes are an integral part of these financial statements.

Statements of Changes in Resources for the Years Ended April 30, 2001 and 2000

(In thousands of SDRs)
General Resources

Account
Special

Disbursement

Account

Accumulated

Resources
QuotasSpecial

Reserve
General

Reserve
Total

Reserve
Balance at April 30, 1999207,982,9001,809,246759,8642,569,110677,606
Quota subscriptions2,268,500
Net income of the General Resources Account transferred to reserves369,136166,788535,924
Net income of the Special Disbursement Account2,258,252
Transfers from the Trust Fund441
Transfers to the PRGF Trust(99,305)
Transfers to the PRGF-HIPC: Trust(69,267)
Balance at April 30, 2000210,251,4002,178,382926,6523,105,0342,767,727
Quota subscriptions2,163,500
Net income of General Resources Account transferred to reserves166,6008,865175,465
Net income of the Special Disbursement Account151,416
Transfers from the Trust Fund131
Transfers from the Supplementary Financing Facility Subsidy Account104
Transfers to the PRGF Trust(25,924)
Transfers to the PRGF-HIPC Trust(55,000)
Balance at April 30, 2001212,414,9002,344,982935,5173,280,4992,838,454
The accompanying notes are an integral part of these financial statements.

Statements of Cash Flows for the Years Ended April 30, 2001 and 2000

(In thousands of SDRs)
20012000
Usable currencies and SDRs from operating activities
Net income of the General Resources Account175,465535,924
Net income of the Special Disbursement Account151,4162,258,252
Adjustments to reconcile net income to usable resources generated by operations
Placement of profits from gold sales in the SDA(2,226,000)
Changes in receivables and other assets(153,434)(152,670)
Changes in remuneration payable and other liabilities(6,529)(78,897)
Allocation to the Special Contingent Account94,000128,456
Unrealized gains on investments(28,587)(2,461)
Net usable currencies and SDRs provided by operating activities232,331462,604
Usable currencies and SDRs from investment activities
Net acquisition of investments by the Special Disbursement Account(121,252)(2,253,628)
Sales of gold2,679,049
Net usable currencies and SDRs (used)/provided by investment activities(121,252)425,421
Usable currencies and SDRs from credit to members
Purchases in currencies and SDRs, including reserve tranche purchases(9,599,529)(6,377,039)
Repurchases in currencies and SDRs11,243,29920,312,905
Repayments of Structural Adjustment Facility loans79,112165,968
Net usable currencies and SDRs from credit to members1,722,88214,101,834
Usable currencies and SDRs from financing activities
Subscription payments in SDRs and usable currencies1,746,5001,966,700
Changes in composition of usable currencies367,2288,726,696
Transfers to the PRGF Trust, PRGF-HIPC Trust, and other accounts(80,689)(168,131)
Refunds of the second Special Contingent Account balances(1,000,000)
Net usable currencies and SDRs provided by financing activities2,033,0399,525,265
Net increase in usable currencies and SDRs3,867,00024,515,124
Usable currencies and SDRs, beginning of period108,224,17283,709,048
Usable currencies and SDRs, end of period112,091,172108,224,172
The accompanying notes are an integral part of these financial statements.

Notes to the Financial Statements as at April 30, 2001 and 2000

1. Purpose and Organization

The IMF is an international organization of 183 member countries. It was established, among other purposes, to promote international monetary cooperation and exchange stability and to maintain orderly exchange arrangements among members; to foster economic growth and high levels of employment; and to provide temporary financial assistance to countries under adequate safeguards to help ease balance of payments adjustment. The IMF conducts its operations and transactions through the General Department and the Special Drawing Rights Department (the SDR Department). The General Department consists of the General Resources Account (GRA), the Special Disbursement Account (SDA), and the Investment Account. The latter has never been activated. The IMF also administers trusts and accounts established to perform financial and technical services and financial operations consistent with the purposes of the IMF. The resources of these trusts and accounts are contributed by members and the IMF. The financial statements of the SDR Department and these trusts and accounts are presented separately.

General Resources Account

The GRA holds the general resources of the IMF. Its resources reflect the receipt of quota subscriptions, use and repayment of IMF credit, collection of charges on the use of credit, payment of remuneration on creditor positions, borrowings, and payment of interest and repayment of borrowings.

Special Disbursement Account

The assets and resources of the SDA are held separately from other accounts of the General Department. Resources of the SDA include transfers received from the Trust Fund, an account administered by the IMF, and part of the proceeds from the sales of the IMF’s gold. Income from the investment of gold profits in the SDA is to be transferred, as needed, to the Poverty Reduction and Growth Facility–Heavily Indebted Poor Countries Trust (PRGF-HIPC Trust, formerly Enhanced Structural Adjustment Facility–Heavily Indebted Poor Countries or ESAF-HIPC Trust), in accordance with decisions of the IMF. The SDA also holds outstanding loans extended under the Structural Adjustment Facility (SAF), which was established in March 1986 to provide balance of payments assistance on concessional terms to qualifying low-income developing country members.

Assets that exceed the financing needs of the SDA, excluding investments arising from the sales of gold, are transferred to the Reserve Account of the Poverty Reduction and Growth Facility Trust (PRGF Trust, formerly Enhanced Structural Adjustment Facility Trust, or ESAF Trust), which is administered separately by the IMF as trustee.

2. Summary of Significant Accounting Policies

Basis of Presentation

The financial statements of the IMF are prepared in accordance with International Accounting Standards (IAS). Specific accounting principles and disclosure practices are explained further below. The preparation of financial statements in conformity with IAS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

In financial year 2001, the IMF elected early adoption of IAS 39, Financial Instruments: Recognition and Measurement. The adoption of IAS 39 had no material effect on the IMF’s financial statements.

Revenue and Expense Recognition

The financial statements are prepared on the accrual basis; accordingly, income is recognized as it is earned, and expenses are recorded as they are incurred.

Unit of Account

The financial statements are expressed in terms of SDRs. The value of the SDR is determined by the IMF each day by summing the values in U.S. dollars, based on market exchange rates, of the currencies in the SDR valuation basket. The IMF reviews the SDR valuation basket even’ five years. The latest review was completed in October 2000, and the new composition of the SDR valuation basket became effective on January 1, 2001. The value of the SDR in terms of U.S. dollars on the last business day prior to the change (December 29, 2000) was identical under both valuation baskets. The currencies in the basket as of April 30, 2001 and 2000 and their amounts were as follows:

CurrencyAmount
To December 31,

2000
From January 1,

2001
Euro0.426
Euro (Germany)0.228
Euro (France)0.1239
Japanese yen27.221.0
Pound sterling0.1050.0984
U.S. dollar0.58210.577

As of April 30, 2001, one SDR was equal to 1.26579 U.S. dollars (one SDR was equal to 1.31921 U.S. dollars as of April 30, 2000).

Credit Outstanding

The IMF provides balance of payments assistance in accordance with established policies by selling to members, in exchange for their own currencies, SDRs or currencies of other members. When members make purchases, they incur obligations to repurchase the IMF’s holdings of their currencies within specified periods by payments in SDRs or other currencies, as determined by the IMF. The IMF’s policies on the use of its general resources are intended to ensure that their use is temporary and will be reversed within agreedupon repurchase periods.

A member is entitled to repurchase, at any time, the IMF’s holdings of its currency on which charges are levied and is expected to make repurchases as and when its balance of payments and reserve position improve.

Overdue Obligations and the First Special Contingent Account

It is the policy of the IMF to exclude from current income, charges due by members that are six months or more overdue in meeting payments to the IMF, unless these members are current in the payment of charges.

Debtor and creditor members share equally the financial consequences of overdue obligations under a mechanism referred to as burden sharing. The IMF generates compensating income equal to unpaid and deferred charges, excluding special charges, by adjusting the rates of charge and remuneration. Members that have borne the financial consequences of overdue charges will receive refunds only to the extent that overdue charges that had given rise to burden sharing adjustments are settled, and these amounts are therefore not presented as liabilities. In view of protracted overdue repurchase obligations, the IMF also accumulates precautionary balances in the first Special Contingent Account (SCA-1). Allocations to the SCA-1 are financed by further adjustments to the rates of charge and remuneration (see Note 10).

Currencies

Currencies consist of members’ currencies and securities held by the IMF. Each member has the option to substitute nonnegotiable and non-interest-bearing securities for the IMF’s holdings of its currency that exceeds ¼ of 1 percent of the member’s quota. These securities are encashable by the IMF on demand.

Each member is required to pay to the IMF its initial quota and subsequent quota increases partly in its own currency, with the remainder to be paid in usable currencies or SDRs. One exception was the quota increase of 1978, which was paid entirely in members’ own currencies.

Usable Currencies

Usable currencies consist of currencies of members considered by the IMF to have strong balance of payment and reserve positions. These currencies are included in the IMF’s financial transactions plan to finance purchases and other transfers of the IMF. Participation in the financial transactions plan is reviewed on a quarterly basis.

Valuation of Currencies

Currencies, including securities, are valued in terms of the SDR on the basis of the currency/SDR exchange rate determined for each currency. Securities are not marketable, but can be converted into cash on demand. Each member is obligated to maintain, in terms of the SDR, the SDR value of the balances of its currency held by the IMF in the CRA. This requirement is referred to as the maintenance-of-value obligation. Whenever the IMF revalues its holdings of a member’s currency, a receivable or a payable is established for the amount required to maintain the SDR value of the IMF’s holdings of that currency. The currency balances in the balance sheet include these receivables and payables. All currencies were revalued in terms of the SDR on April 30, 2001 and 2000.

SDR Holdings

Although SDRs are not allocated to the IMF, the IMF may acquire, hold, and dispose of SDRs through the GRA. The IMF receives SDRs from members in the settlement of their financial obligations to the IMF and uses SDRs in transactions and operations with members. The IMF earns interest on its SDR holdings at the same rate as all other holders of SDRs.

SDR Interest Rate

The SDR interest rate is determined weekly by reference to a combined market interest rate, which is a weighted average of yields on short-term instruments in the capital markets of France, Germany, Japan, the United Kingdom, and the United States.

Gold Holdings

The Articles of Agreement limit the use of gold in the IMF’s operations and transactions. Any use provided for in the Articles requires a decision supported by an 85 percent majority of the total voting power, In accordance with the provisions of the Articles, whenever the IMF sells gold held on the date of the Second Amendment of the IMF’s Articles of Agreement (April 1, 1978), the portion of the proceeds equivalent at the time of sale to one SDR per 0.888671 gram of fine gold, which is equal to SDR 35 per fine troy ounce, must be placed in the GRA. Any excess over this value will be held in the SDA or transferred to the Investment Account. The IMF may also sell gold held on the date of the Second Amendment to those members that were members on August 31, 1975, in proportion to their quotas on that date, in exchange for their own currencies, at a price equivalent at the time of sale to one SDR per 0.888671 gram of fine gold

The IMF values its gold holdings at historical cost using the specific identification method (see Note 5).

SAF Loans in the Special Disbursement Account

SAF loans in the SDA are valued at historical cost. Allowances for loan losses would be established if and when the IMF expects to incur a loss; no losses have been incurred in the past, and it is the current expectation that no losses will be incurred in the future.

Investments in the Special Disbursement Account

The resources of the SDA are invested pending their use. Investments are made in debt securities, medium term instruments which are fixed-income securities, and fixed-term deposits, either directly or by participation in an investment pool. Investments are marked to fair value on the last business day of the accounting period. Purchases are valued and reflected on the trade date basis and sales are based on the actual settlement date valuations. Investment income comprises interest earned on investments, realized and unrealized gains and losses on investments, and currency valuation differences arising from exchange rate movements against the SDR.

Interest rate risk is managed by limiting the investment portfolio to a weighted average effective duration that does not exceed three years. Currency risk is minimized by investing in securities denominated in SDRs or in the constituent currencies of the SDR valuation basket. Risk is further minimized by ensuring that the currency composition of the investment portfolio matches, as closely as possible, the currency composition of the SDR valuation basket.

Fixed Assets

Fixed assets with a cost in excess of a threshold amount are capitalized at cost. Buildings and equipment are depreciated using the straight-line method over the estimated useful lives of the assets, which range from 3 years for equipment to 30 years for buildings.

Quotas

Each member is assigned a quota that forms the basis of its financial and organizational relationship with the IMF. A member’s quota is related to, but not strictly determined by, economic factors such as national income, the value of external trade and payments, and the level of official reserves. Quotas determine members’ subscriptions to the IMF, their relative voting power, access to financing, and their share in SDR allocations.

Reserve Tranche Position

A member has a reserve tranche in the IMF when the IMF’s holdings of its currency, excluding holdings that reflect the member’s use of IMF credit, are less than the member’s quota. A member’s reserve tranche is considered a part of the member’s external reserves and it may draw on the reserve tranche at any time when it represents that it has a need. Reserve tranche purchases are not considered a use of IMF credit and are not subject to repurchase obligations or charges.

Reserves

The IMF determines annually what part of its net income will be retained and placed to the General Reserve or the Special Reserve, and what part, if any, will be distributed. The Articles of Agreement permit the IMF to use the Special Reserve for any purpose for which it may use the General Reserve, except distribution. After meeting the expenses of conducting the PRGF Trust, net operational income generated from the use of resources under the Supplemental Reserve Facility (SRF) has been transferred to the General Reserve. All other income has been transferred to the Special Reserve.

Charges

The IMF levies periodic charges on members’ use of IMF credit. The rate of charge is set as a proportion of the SDR interest rate. For financial year 2001, the basic rate of charge after the retroactive reduction in charges was 113.7 percent (113.5 percent during financial year ended April 30, 2000) of the SDR interest rate. The basic rate of charge is increased to offset the effect on the IMF’s income of the deferral of unpaid charges and to finance the additions to the SCA-1. The average adjusted rate of charge before applicable surcharges for financial year 2001 was 5.26 percent (for financial year 2000 the average rate was 4.34 percent). A surcharge progressing from 150 to 500 basis points above the rate of charge applies to use of credit under the SRF and the Contingent Credit Lines (CCL). In addition, credit outstanding in excess of 200 percent of quota, resulting from purchases after November 28, 2000 (other than those under the SRF and CCL), is subject to a surcharge of 100–200 basis points. Special charges are levied on members’ currency holdings that are not repurchased when due and on overdue charges. Special charges do not apply to members that are six months or more overdue to the IMF. A service charge is levied by the IMF on all purchases, except reserve tranche purchases. A refundable commitment fee is charged on Stand-By and Extended Arrangements. At the expiration or cancellation of an arrangement, the unrefunded portion of the commitment fee is taken into income.

Remuneration

The IMF pays interest, referred to as remuneration, on a member’s reserve tranche position. The rate of remuneration is equal to the SDR interest rate, adjusted downward to finance a share of the nonpayment of charges and additions to the SCA-1. The average adjusted rate of remuneration for the financial year ended April 30, 2001 was 4.30 percent (3.50 percent for the financial year 2000). A portion of the reserve tranche is unremunerated and is equal to 25 percent of the member’s quota on April 1, 1978—that part of the quota that was paid in gold prior to the Second Amendment of the Fund’s Articles. For a member that joined the Fund after that date, the unremunerated reserve tranche is the same percentage of its initial quota as the average unremunerated reserve tranche was as a percentage of the quotas of all other members when the new member joined the Fund. The unremunerated reserve tranche remains fixed for each member in nominal terms, but because of subsequent quota increases, it is now significantly lower when expressed as a percentage of quota. The average is equal to 3.8 percent of quota at April 30, 2001 and 2000, but the actual percentage is different for each member.

Pension and Other Post-Retirement Obligations

The IMF operates two defined-benefit pension plans and provides post-retirement benefits to retired staff. In financial year 2000, the IMF adopted International Accounting Standard 19 on employee benefits. The cumulative effect of the accounting change resulted in a transitional gain of SDR 268 million that was recognized as part of net income for the year ended April 30, 2000 and included in other assets.

The pension plans are funded by payments from the staff and the IMF, taking into account the recommendations of independent actuaries. Assets of the plans are held in separate trustee-managed funds and are measured at fair value as of the balance sheet date. Pension obligations are measured using the Projected Unit Credit Method, which measures the present value of the estimated future cash outflows, using interest rates of government securities that have maturities approximating the terms of the pension liabilities.

The assets set aside for the provision of post-retirement benefits are held in an investment account administered by the IMF. This account is funded by contributions from the IMF. The expected costs of the post-retirement medical and life insurance benefits are accrued over the period of employment using the Projected Unit Credit Method. Valuations of these obligations are carried out by independent actuaries.

Comparatives

When necessary, comparative figures have been reclassified to conform with changes in the presentation of the current year.

3. Credit Outstanding

Changes in the outstanding use of IMF credit under the various facilities of the GRA during the years ended April 30, 2001 and 2000 were as follows:

April 30,

1999
PurchasesRepurchasesApril 30,

2000
PurchasesRepurchasesApril 30,

2001
In millions of SDRs
Regular facilities24,5344,480(8,046)20,9684,396(8,658)16,706
Extended Fund
Facility15,8001,594(1,033)16,3611,013(1,417)15,957
Supplemental
Reserve Facility12,655(12,655)4,0854,085
Systemic Transformation
Facility3,364(646)2,718(785)1,933
Enlarged Access1,306(554)752(322)430
Compensatory and
Contingency
Financing Facility2,845237(50)3,032(40)2,992
Supplementary
Financing Facility146(9)137(24)116
Total credit outsanding60,6506,311(22,993)43,9689,494(11,243)42,219

The Federal Republic of Yugoslavia (Serbia/Montenegro) notified the IMF in January 1993 that it agreed to its share in the assets and liabilities of the former Socialist Federal Republic of Yugoslavia (SFRY) in the IMF. On December 20, 2000, the IMF’s Executive Board concluded that the Federal Republic of Yugoslavia (Serbia/Montenegro) is able to fulfill its obligations under the Articles of Agreement and therefore succeeds to the membership in the IMF of the former SFRY, effective December 14, 1992. Credit outstanding with respect to the Federal Republic of Yugoslavia (Serbia/Montenegro) amounted to SDR 56 million as of April 30, 2000 and was included as a receivable in the balance sheet.

As of April 30, 2001 and 2000, SDA loans and interest receivable computed at 0.5 percent a year, consisted of the following:

20012000
In millions of SDRs
Structural Adjustment
Facility loans432511
Interest accrued88
Less: interest deferred(7)(7)
433512

Scheduled repurchase obligations in the GRA and repayments of SAF loans in the SDA are summarized below:

Financial Year

Ending

April 30
General

Resources

Account
Special

Disbursement

Account
In millions of SDRs
20028,85991
200311,85362
20047,60351
20055,22540
20062,69737
2007 and beyond5,117
Overdue865152
Total42,219433

As of April 30, 2001 and 2000, use of credit in the GRA by the largest users was as follows:

20012000
In millions of SDRs and as a percent

of total GRA credit outstanding
Largest user of credit8,54620.2%10,15923.1%
Three largest users of credit22,30852.8%22,34850.8%
Five largest users of credit28,72868.0%28,12764.0%

Overdue Obligations

At April 30, 2001, six members (as of April 30, 2000, six members and the Federal Republic of Yugoslavia (Serbia/Montenegro)) were six months or more overdue in settling their financial obligations to the IMF. Four of these members were overdue to the General Department.

GRA repurchases, GRA charges, SAF loan repayments, and SAF interest that are six or more months overdue in the General Department were as follows:

Repurchases

and SAF Loans
Charges and

SAF Interest
2001200020012000
In millions of SDRs
Total overdue1,0111,1141,017988
Overdue for six months or more1,0111,114992967
Overdue for three years or more9851,063886852

The type and duration of these arrears as of April 30, 2001, were as follows:

Repurchases

and SAF

loans
Charges

and SAF

Interest
Total

Obligation
Longest

Overdue

Obligation
In millions of SDRs
Congo, Democratic
Republic of30076376May 1991
Liberia201232433April 1985
Somalia10688194July 1987
Sudan4046211,025July 1985
Total1,0111,0172,028

4. Currencies

Changes in the IMF’s holdings of members’ currencies for the years ended April 30, 2001 and 2000 were as follows:

April 30,

1999
Net

Change
April 30,

2000
Net

Change
April 30,

2001
In millions of SDRs
Members quotas207,9832,268210,2512,164212,415
Members’ outstanding
use of IMF credit
in the GRA60,595(16,682)43,913(1,694)42,219
Members’ reserve
tranche positions
in the GRA(63,610)14,738(48,872)2,139(46,733)
Administrative
currency balances(2)(1)(3)63
Currencies204,966323205,2892,615207,904

Receivables and payables arising from valuation adjustments at April 30, 2001, when all holdings of currencies of members were last revalued, amounted to SDR 14,736 million and SDR 3,886 million, respectively (SDR 13,617 million and SDR 3,757 million, respectively, at April 30, 2000). Settlements of these receivables or payables are required to be made promptly after the end of each financial year.

Other currency holdings, other than those resulting from the use of credit or usable currencies, amounted to SDR 56,031 million (SDR 55,876 million as of April 30, 2000); of this amount SDR 33,129 million (SDR 39,459 million as of April 30, 2000) represents currencies of members that use IMF credit.

5. Gold Holdings

During the financial year ended April 30, 2000, the IMF sold 12,944,253 fine ounces of gold at market prices to two members with repurchase obligations falling due to the IMF. The same amount of gold, also valued at market price, was accepted in settlement of repurchase obligations. Proceeds in excess of the carrying value of gold, amounting to SDR 2,226 million, were placed in the SDA and subsequently invested. Income from investments will be transferred on an “as needed” basis to a separate subaccount of the PRGF-HIPC Trust to finance the HIPC initiative.

At April 30, 2001 and April 30, 2000, the IMF held 3,217,341 kilograms of gold, equal to 103,439,916 fine ounces of gold, at designated depositories. As of April 30, 2001, the value of the IMF’s holdings of gold calculated at the market price was SDR 21.5 billion (SDR 21.6 billion at April 30, 2000).

6. Interest and Charges

As of April 30, 2001, the total holdings on which the IMF levies charges amounted to SDR 42,219 million (SDR 43,968 million as of April 30, 2000). Charges and other receivables due to the IMF as of April 30, 2001 and April 30, 2000 were as follows:

20012000
In millions of SDRs
Periodic charges1,5601,599
Less: deferred income(1,020)(994)
540605
Other receivables2283
Receivables562688

Periodic charges for the years ended April 30, 2001 and 2000 consisted of the following:

20012000
In millions of SDRs
Periodic charges2,1742,451
Add: adjustments for deferred
charges, net of refunds, and
for contributions to the SCA-16082
Less: income deferred,
net of settlements(27)(34)
Total periodic charges2,2072,499

7. Fixed Assets

Other assets include capital assets, which at April 30, 2001 and 2000 amounted to SDR 223 million and SDR 224 million, respectively, and consisted of:

20012000
In millions of SDRs
Land and buildings307302
Equipment4640
Total fixed assets353342
Less: accumulated depreciation(130)(118)
Net fixed assets223224

8. Investments of the Special Disbursement Account

As at April 30, the investments consisted of the following:

20012000
In millions of SDRs
Medium-term instruments1,6111,508
Debt securities791592
Fixed-term deposits4156
Total2,4062,256

As at April 30, the maturity profile of the investments is summarized below:

20012000
In millions of SDRs
Less than 1 year39166
1–3 years2,2471,910
3–5 years117171
Over 5 years39
Total2,4062,256

Investment income for the years ended April 30 included the following:

20012000
In millions of SDRs
Interest income11028
Realized gains11
Unrealized gains292
Total income15030

9. Remuneration and Financing Costs

At April 30, 2001, total creditor positions on which the IMF paid remuneration amounted to SDR 40,176 million (SDR 42,339 million at April 30, 2000). Remuneration and financing costs for the years ended April 30, 2001 and 2000 consisted of the following:

20012000
In millions of SDRs
Remuneration1,7941,848
Less: adjustments for deferred
charges net of refunds, and for
contributions to the SCA–1(60)(80)
1,7341,768
Financing costs related to borrowing
under the New Arrangements
to Borrow (Note 11)59
1,7341,827

10. Deferred Income and the Special Contingent Accounts

The SCA-1 is financed by quarterly adjustments to the rate of charge and the rate of remuneration. Balances in the SCA-1 are to be distributed to the members that shared the cost of its financing when there are no outstanding overdue repurchases and charges, or at such earlier time as the IMF may decide. At April 30, 2001, the balances held in the SCA-1 amounted to SDR 1,213 million (SDR 1,119 million at April 30, 2000).

The second Special Contingent Account (SCA-2) was established on July 1, 1990 to accumulate SDR 1.0 billion through further adjustments to the rate of charge and the rate of remuneration. The SCA-2 was terminated during the year ended April 30, 2000, and the balances in the account were distributed in accordance with instructions received from members who contributed to its financing.

Cumulative charges, net of settlements, that have been deferred since May 1, 1986 and have resulted in adjustments to charges and remuneration amounted to SDR 832 million at April 30, 2001 (SDR 805 million at April 30, 2000). The cumulative refunds for the same period, resulting from the settlements of deferred charges for which burden-sharing adjustments have been made, amounted to SDR 993 million (SDR971 million at April 30, 2000).

11. Borrowings

Under the General Arrangements to Borrow (GAB), the IMF may borrow up to SDR 18.5 billion when supplementary resources are needed, in particular, to forestall or to cope with an impairment of the international monetary system. The GAB became effective on October 24, 1962, and has been extended through December 25, 2003. Interest on borrowings under the GAB is calculated at a rate equal to the SDR interest rate.

Under the New Arrangements to Borrow (NAB), the IMF may borrow up to SDR 34 billion of supplementary resources. The NAB is the facility of first and principal recourse, but it does not replace the GAB, which will remain in force. Outstanding drawings and commitments under these two borrowing arrangements are limited to a combined total of SDR 34 billion. The NAB became effective for a five-year period on November 17, 1998 and was activated on December 2, 1998. Interest on borrowings under the NAB is payable to the participants at the SDR interest rate or any such higher rate as may be agreed between the IMF and participants representing 80 percent of the total credit arrangement. Interest in connection with the December 2, 1998 activation was set at the SDR interest rate plus 100 basis points for the first year, increased by 16.7 basis points for each six-month period thereafter up to a maximum increase of 66.7 basis points. As a condition for that activation of the NAB, the IMF was required to transfer to the PRGF-HIPC Trust an amount equal to 100 basis points on outstanding SRF purchases under the arrangement that was originally financed by the NAB for the first year, augmented by 16.7 basis points for each six-month period thereafter up to a maximum increase of 66.7 basis points.

12. Arrangements and Commitments in the General Department

An arrangement is a decision of the IMF that gives a member the assurance that the IMF stands ready to provide SDRs or usable currencies during a specified period and up to a specified amount, in accordance with the terms of the arrangement. At April 30, 2001, the undrawn balances under the 25 arrangements that were in effect in the GRA amounted to SDR 22,316 million (SDR 25,567 million under 27 arrangements at April 30, 2000).

The IMF has committed to lease commercial office space through 2005. Expenditures totaling SDR 45 million will be incurred over this five-year period.

13. Administrative Expenses

The administrative expenses for the years ended April 30, 2001 and 2000 were as follows:

20012000
In millions at SDRs
Personnel212300
Travel6962
Other10689
Less reimbursements of
the administration
of the SDR Department(2)(3)
Total administrative expenses,
net of reimbursements385448

The majority of these expenses are incurred in U.S. dollars; exchange gains and losses incurred in the normal course of business are reflected in administrative expenses and are not significant.

The GRA is reimbursed for the cost of administering the SDR Department.

The GRA is to be reimbursed annually for expenses incurred in administering the SDA and the PRGF Trust. Following the establishment of the SRF and CCL and the consequent increase in net operational income, the Exccutive Board decided to forgo reimbursement of the expenses incurred in administering the PRGF Trust for financial years 2001 and 2000 and to transfer the amounts that would otherwise have been reimbursed to the GRA from the PRGF Trust Reserve Account, through the SDA, to the PRGF-HIPC Trust. These transfers amounted to SDR 55 million for financial year 2001 (SDR46 million for financial year 2000) and have been included under transfer to the PRGFHIPC’ Trust in the statement of changes in resources.

14. Pension and Other Post-Retirement Benefits

The IMF has a defined-benefit Staff Retirement Plan (SRP) that covers substantially all eligible staff and a Supplemental Retirement Benefits Plan (SRBP) for selected participants of the SRP. Participants contribute a fixed percentage of their pensionable remuneration. The IMF contributes the remainder of the cost of funding the plans and pays certain administrative costs of the plans. In addition, the IMF provides other employment and post-retirement benefits, including medical and life insurance benefits. In 1995, the IMF established a separate account, the Retired Staff Benefits Investment Account (RSBIA), to hold and invest resources set aside to fund the cost of these employment benefits.

On March 23, 2001, the RSBIA was amended to include the funding and administration of all existing long-term benefits, other than pension benefits for regular staff, including separation and repatriation benefits, accrued annual leave up to 60 days, payments in lieu of pension for contractual employees, and associated tax allowances.

The obligations of the SRP, SRBP, and RSBIA are valued by independent actuaries even’ year using the Projected Unit Credit Method. The latest actuarial valuations were carried out as at April 30, 2001. The key assumptions used are as shown below. The present value of the defined benefit obligation and current service cost was calculated using the Projected Unit Credit Method.

Amounts recognized in the balance sheets are as follows:

20012000
In millions of SDRs
Fair value of plan assets3,2003,304
Present value of the defined benefit obligation(2,538)(2,284)
Unrecognized actuarial gains(231)(797)
Net balance sheet asset431223

Movement in the net balance sheets asset:

20012000
In millions of SDRs
Net balance sheet asset,
beginning of year223(56)
Reclassification of related liability(6)
Income recognized in income
statement90247
Contributions paid12432
Net balance sheet asset,
end of year431223

The amounts recognized in the income statements are as follows:

20012000
In millions of SDRs
Current service cost9072
Interest cost184169
Expected return on assets(321)(220)
Amortization of actuarial gain(43)
Effect of adopting IAS 19 (gain)(268)
Total gain recognized
in income statement(90)(247)
Actual return on assets(315)656

Principal actuarial assumptions used:

20012000
In percent
Discount rate7.58.0
Expected return on
plan assets9.39.3
Future salary increases6.6–11.06.6–11.0
Health care costs growth rates at:
End of financial year8.58.5

Schedule 1 Quotas, IMF’s Holdings of Currencies, Reserve Tranche Positions, and Members’ Use of Resources as at April 30, 2001

(In thousands of SDRs)
MemberGeneral Resources Account
QuotaIMF’s holdings

of currencies1
Reserve

tranche

position
Use of Resources
GRAPRGF
AmountPercentSDA2Trust3Total4
TotalPercent of quota(A)+ (B)+ (C)= (D)
Afghanistan, Islamic State of120,400115,48895.94,928
Albania48,70053,072109.03,3557,7220.0260,94868,670
Algeria1,254,7002,467,036196.685,0821,297,4133.071,297,413
Angola286,300286,445100.1
Antigua and Barbuda13,50013,499100.04,928
Argentina2,117,1007,836,466370.25,719,33713.555,719,337
Armenia, Republic of92,000115,911126.023,9060.06109,350133,256
Australia3,236,4002,291,19070.8945,275
Austria1,872,3001,323,45570.7548,828_
Azerbaijan160,900323,544201.110162,6440.3981,900244,544
Bahamas, The130,300124,06595.26,239
Bahrain135,00069,45151.465,558
Bangladesh533,300631,244118.418698,1250.2354,562152,687
Barbados67,50062,82793.14,675
Belarus, Republic of386,400462,342119.72075,9420.1875,942
Belgium4,605,2003,253,98670.71,351,219
Belize18,80014,56277.54,239
Benin61,90059,72196.52,1884,08960,93865,027
Bhutan6,3005,28083.81,020
Bolivia171,500162,63894.88,875165,134165,134
Bosnia and Herzegovina169,100249,535147.680,4300.1980,430
Botswana63,00045,13971.617,871
Brazil3,036,1004,393,547144.71,356,7503.211,356,750
Brunei Darussalam150,000114,72776.535,285
Bulgaria640,2001,582,358247.232,742974,8872.31974,887
Burkina Faso60,20052,98488.07,2219,79678,57888,374
Burundi77,00071,14192.45,8605,3765,376
Cambodia87,50090,105103.02,6040.0158,67161,275
Cameroon185,700185,18399.7521178,040178,040
Canada6,369,2004,497,15670.61,872,067
Cape Verde9,6009,598100.02
Central African Republic55,70055,59599.811124,48024,480
Chad56,00055,71999.528259,13459,134
Chile856,100597,42969.8258,671
China6,369,2004,588,15372.01,781,093
Colombia774,000488,20263.1285,803
Comoros8,9008,36294.0540900900
Congo, Democratic Republic of291,000448,109154.0157,1090.37142,910300,019
Congo, Republic of84,600101,893120.453617,8150.0413,89631,711
Costa Rica164,100144,11387.820,000
Côte d’Ivoire325,200324,91099.9294415,659415,659
Croatia, Republic of365,100475,473130.2159110,5300.26110,530
Cyprus139,600104,24074.735,369
Czech Republic819,300786,70896.032,601
Denmark1,642,8001,179,98871.8462,816
Djibouti15,90018,785118.11,1003,9850.015,4529,437
Dominica8,2008,19299.99
Dominican Republic218,900258,599118.1339,7000.0939,700
Ecuador302,300398,495131.817,153113,3460.27113,346
Egypt943,700823,64387.3120,075
El Salvador171,300171,303100.0
Equatorial Guinea32,60032,609100.02,7277703,497
Eritrea15,90015,900100.05
Estonia, Republic of65,20077,789119.3612,5940.0312,594
Ethiopia133,700126,58794.77,12326,84246,87173,713
Fiji70,30055,33578.714,983
Finland1,263,800914,53972.4349,274
France10,738,5007,533,29470.23,205,268
Gabon154,300222,521144.215868,3750.1668,375
Gambia, The31,10029,61895.21,48513,83213,832
Georgia150,300189,613126.21039,3130.09190,050229,363
Germany13,008,2009,019,85069.33,988,357
Ghana369,000369,004100.0214,912214,912
Greece823,000576,95870.1246,044
Grenada11,70011,701100.0
Guatemala210,200210,206100.0
Guinea107,100107,02699.97593,62793,627
Guinea-Bissau14,20017,750125.03,5500.0115,26518,815
Guyana90,90090,902100.08,11879,33687,454
Haiti60,70075,821124.95615,1750.0415,17530,350
Honduras129,500168,374130.08,62747,5000.11115,880163,380
Hungary1,038,400819,04778.9219,354
Iceland117,60099,02384.218,580
India4,158,2003,669,60488.2488,641
Indonesia2,079,3009,976,608479.8145,4798,042,78619.058,042,786
Iran, Islamic Republic of1,497,2001,497,204100.0
Iraq504,000504,013100.0
Ireland838,400599,83971.5238,578
Israel928,200838,29590.389,911
Italy7,055,5005,007,02271.02,048,479
Jamaica273,500317,008115.943,4580.143,458
Japan13,312,8009,435,46970.93,877,863
Jordan170,500513,694301.352343,2430.81343,243
Kazakhstan, Republic of365,700365,700100.05
Kenya271,400258,92895.412,47593,70993,709
Kiribati5,6005,601100.0
Korea1,633,6003,349,129205.0208,6581,924,1804.561,924,180
Kuwait1,381,100993,77272.0387,329
Kyrgyz Republic88,800102,238115.1513,4380.03127,164140,602
Lao People’s Democratic Republic52,90052,900100.01,75833,26935,027
Latvia, Republic of126,800151,546119.55524,7810.0624,781
Lebanon203,000184,16890.718,833
Lesotho34,90031,36589.93,53910,44610,446
Liberia71,300272,424382.128201,1430.48224,224
Libya1,123,700728,20664.8395,505
Lithuania, Republic of144,200281,755195.416137,5690.33137,569
Luxembourg279,100210,83175.568,296
Macedonia, former Yugoslav Republic of68,90099,943145.131,0410.0729,00460,045
Madagascar122,200122,174100.02790.02790,027
Malawi69,40067,16696.82,23660,54560,543
Malaysia1,486,600878,45059.1608,156
Maldives8,2006,64681.01,554
Mali93,30084,46890.58,8354,064123,760127,824
Malta102,00061,74660.540,260
Marshall Islands2,5002,500100.01
Mauritania64,40064,406100.01.36476.10377,467
Mauritius101,60087,13885.814,474
Mexico2,585,8002,585,468100.0341
Micronesia, Federated States of5,1005,100100.01
Moldova, Republic of123,200229,450186.25106,2500.2518,480124,730
Mongolia51,10051,06299.94237,65737,657
Morocco588,200517,76188.070,441
Mozambique113,600113,600100.0165,890163,890
Myanmar258,400258,402100.0
Namibia136,500130,463100.037
Nepal71,30065,55791.95,7467,8337,833
Netherlands5,162,4003,606,39569.91,556,021
New Zealand894,600643,20971.9251,395
Nicaragua130,000130.010100.0129,334129,334
Niger65,80057,24087.08,56156,76056,760
Nigeria1,753,2001,753,122100.0143
Norway1,671,7001,194,63171.5477,094
Oman194,000138,39571.355,672
Pakistan1,033,7001,867,475180.7114853,8871,9821.852375,8001,231,539
Palau3,1003,100100.01
Panama206,600251,839121.911,86057,0880.1457,088
Papua New Guinea131,600198,754151.026067,4050.1667,405
Paraguay99,90078,42878.521,475
Peru638,4001,013,162158.7374,7290.89374,729
Philippines879,9002,352,031267.387,1041,559,2223.691,559,222
Poland, Republic of1,369,0001,146,24483.7222,756
Portugal867,400622,11871.7245,284
Qatar263,800206,42378.257,377
Romania1,030,2001,355,303131.6325,0980325.098
Russian Federation5,945,40014,490,333243.79808.545,87220.248,545,872
Rwanda80,10089,787112.19,6690.0252,36062,029
Samoa11,60010,91894.1683
San Marino, Republic of17,00012,90075.94.101
São Tomé and Príncipe7,4007,403100.01,9021,902
Saudi Arabia6,985,5005,725,82182.01,259,683
Senegal161,800160,39999.11,405830207,156207,986
Seychelles8,8008,800100.01
Sierra Leone103,700141,190136.22437,5050.0916,21270,437124.154
Singapore862,500611,97971.0250,556
Slovak Republic357,500357,505100.0
Slovenia, Republic of231,700168,52072.765,186
Solomon Islands10,4009,86794.9543
Somalia44,200140,907318.896,7010.258,840112,004
South Africa1,868,5001,868,202100.0301
Spain3,048,9002,107,65769.1941,258
Sri Lanka413,400469,012113.547,741103,3500.24100,800204,150
St. Kitts and Nevis8,90010,445117.4821,6251,625
St. Lucia15,30015,300100.01
St. Vincent and the Grenadines8,3007,80094.0500
Sudan169,700573,678338.111403,9580.97463,186
Suriname92,10085,97593.36,125
Swaziland50,70044,15487.16,552
Sweden2,395,5001,722,36471.9673,147
Switzerland3,458,5002,504,24572.4954,271
Syrian Arab Republic293,600293,603100.05
Tajikistan, Republic of87,000102,938118.3215,9380.0472,28088,218
Tanzania198,900188,93295.09,975266,200266,200
Thailand1,081,9003,206,895296.4202,125,0005.032,125,000
Togo73,40073,11399.629052,26052,260
Tonga6,9005,19775.31,710
Trinidad and Tobago335,600322,08696.013,516
Tunisia286,500288,822100.820,16722,4850.0522,485
Turkey964,0005,145,828533.8112,7754,294,60010.174,294,600
Turkmenistan, Republic of75,20075,200100.05
Uganda180,500180,507100.0242,446242,446
Ukraine1,372,0002,824,890205.931,452,8903.441,452,890
United Arab Emirates611,700434,36971.0177,331
United Kingdom10,738,5007,637,75771.13,100,748
United States37,149,30026,235,37070.610,914,535
Uruguay306,500385,032125.635,675114,2000.27114,200
Uzbekistan, Republic of275,600361,522131.2585,9220.285,922
Vanuatu17,00014,50685.32,496
Venezuela, Republica Bolivariana de2,659,1002,405,28490.5321,90068,0830.1668,083
Vietnam329,100341,180103.7512,0800.03264,880276,960
Yemen, Republic of243,500322,725132.51379,2340.19170,000249,234
Yugoslavia, Federal Republic of (Serbia/Montenegro)467,700584,639125.0116,9250.28116,925
Zambia489,100489,101100.018181,750716,622898,372
Zimbabwe353,400472,034133.6327118,9570.2890,520209,477
Total212,414,900207,904,46246,732,98642,219,061100432,0525,899,47848,639,366

Includes nonnegotiable, non-interest-bearing notes that members are entitled to issue in substitution for currencies, and outstanding currency valuation adjustments.

The Special Disbursement Account (SDA) of the General Department had financed loans under Structural Adjustment Facility (SAP) and Poverty Reduction Growth Facility (PRGF) arrangements.

For information purposes only. The PRGF Trust provides financing under PRGF arrangements and is not a part of the General Department.

Includes outstanding Trust Fund loans to Liberia (SDR 23 million), Somalia (SDR 6 million), and Sudan (SDR 59 million).

Less than SDR 500.

Includes nonnegotiable, non-interest-bearing notes that members are entitled to issue in substitution for currencies, and outstanding currency valuation adjustments.

The Special Disbursement Account (SDA) of the General Department had financed loans under Structural Adjustment Facility (SAP) and Poverty Reduction Growth Facility (PRGF) arrangements.

For information purposes only. The PRGF Trust provides financing under PRGF arrangements and is not a part of the General Department.

Includes outstanding Trust Fund loans to Liberia (SDR 23 million), Somalia (SDR 6 million), and Sudan (SDR 59 million).

Less than SDR 500.

Schedule 2 Financial Resources and Liquidity Position in the General Resources Account as at April 30, 2001 and 2000

(In thousands of SDRs)
20012000
Total Resources
Currencies207,904,462205,288,673
SDR holdings2,436,7442,723,892
Gold holdings5,851,7715,851,771
Sundry assets, net of sundry liabilities1715,441611,117
Total resources216,908,418214,475,453
Less: Non-Usable Resources2104,817,246106,251,281
Equals: Usable Resources3112,091,172108,224,172
Resources Committed and Working Balances
Undrawn balances under arrangements418,097,84918,387,266
Minimum working balances415,289,11015,075,130
Resources committed and working balances33,386,95933,462,396
Net Uncommitted Usable Resources578,704,21374,761,776
Liquid Liabilities
Reserve tranche positions646,732,98648,871,519
Liquidity Ratio7168.4%153.0%
Memorandum Item
Resources available under borrowing arrangements34,000,00034,000,000

Sundry assets, net of sundry liabilities, reflect current assets (charges, interest, and other receivables) and other assets (which include capital assets such as land, buildings, and equipment), net of sundry liabilities (remuneration payable and other liabilities).

Resources regarded as non-usable in the financing of the IMF’s ongoing operations and transactions are (1) gold holdings, (2) currencies of members that are using IMF credit, (3) currencies of other members with relatively weak external positions, and (4) sundry assets, net of sundry liabilities.

Usable resources consist of (1) holdings of currencies of members considered by the IMF as having balance of payments and reserve positions sufficiently strong for their currencies to be used in transfers, (2) SDR holdings, and (3) any unused amounts under credit lines that have been activated.

Amounts committed under arrangements, which reflect undrawn balances committed under operative Stand-By and Extended Arrangements, other than precautionary arrangements, are deducted from the total of usable resources, as are one-half of the amounts committed under precautionary arrangements. The Executive Board has decided that the minimum working balances be set at 10 percent of the quotas of members deemed sufficiently strong for their currencies to be used in operations and transactions.

Net uncommitted usable resources are defined as usable resources less resources committed under arrangements and minimum working balances, as described above. The amount represents the resources available to meet requests for use of IMF credit under new credit arrangements and for members’ use of their reserve positions in the IMF.

Liquid liabilities consist of (1) members’ reserve tranche positions, and (2) the amount of any outstanding borrowing by the IMF under the GAB or NAB. Both reserve tranche positions and outstanding lending under the GAB and NAB (together called members1 reserve positions in the IMF) are part of members’ international reserves. The IMF cannot challenge a request by a member to draw on its reserve position, and the IMF must therefore at all times be in a position to meet such requests.

The liquidity ratio is a measure of the IMF’s liquidity position, represented by the ratio of its net uncommitted usable resources to its liquid liabilities.

Sundry assets, net of sundry liabilities, reflect current assets (charges, interest, and other receivables) and other assets (which include capital assets such as land, buildings, and equipment), net of sundry liabilities (remuneration payable and other liabilities).

Resources regarded as non-usable in the financing of the IMF’s ongoing operations and transactions are (1) gold holdings, (2) currencies of members that are using IMF credit, (3) currencies of other members with relatively weak external positions, and (4) sundry assets, net of sundry liabilities.

Usable resources consist of (1) holdings of currencies of members considered by the IMF as having balance of payments and reserve positions sufficiently strong for their currencies to be used in transfers, (2) SDR holdings, and (3) any unused amounts under credit lines that have been activated.

Amounts committed under arrangements, which reflect undrawn balances committed under operative Stand-By and Extended Arrangements, other than precautionary arrangements, are deducted from the total of usable resources, as are one-half of the amounts committed under precautionary arrangements. The Executive Board has decided that the minimum working balances be set at 10 percent of the quotas of members deemed sufficiently strong for their currencies to be used in operations and transactions.

Net uncommitted usable resources are defined as usable resources less resources committed under arrangements and minimum working balances, as described above. The amount represents the resources available to meet requests for use of IMF credit under new credit arrangements and for members’ use of their reserve positions in the IMF.

Liquid liabilities consist of (1) members’ reserve tranche positions, and (2) the amount of any outstanding borrowing by the IMF under the GAB or NAB. Both reserve tranche positions and outstanding lending under the GAB and NAB (together called members1 reserve positions in the IMF) are part of members’ international reserves. The IMF cannot challenge a request by a member to draw on its reserve position, and the IMF must therefore at all times be in a position to meet such requests.

The liquidity ratio is a measure of the IMF’s liquidity position, represented by the ratio of its net uncommitted usable resources to its liquid liabilities.

Schedule 3 Status of Arrangements as at April 30, 2001

(In thousands of SDRs)
MemberDate of

Arrangement
ExpirationTotal

Amount

Agreed
Undrawn

Balance
General Resources Account
Stand-By Arrangements
ArgentinaMarch 10, 2000March 9, 200310,585,5006,751,190
Bosnia and HerzegovinaMay 29, 1998May 29, 200194,42013,990
BrazilDecember 2, 1998December 1, 200113,024,80025,155,650
Croatia, Republic ofMarch 19, 2001May 18, 2002200,000200,000
EcuadorApril 19, 2000June 30, 2001226,730113,384
Estonia, Republic ofMarch 1, 2000August 31, 200129,34029,340
GabonOctober 23, 2000April 22, 200292,58079,360
Latvia, Republic ofApril 20, 2001December 19, 200233,00033,000
Lithuania, Republic ofMarch 8, 2000June 7, 200161,80061,800
NigeriaAugust 4, 2000August 3, 2001788,940788,940
PakistanNovember 29, 2000September 30, 2001465,000210,000
PanamaJune 30, 2000March 29, 200264,00064,000
Papua New GuineaMarch 29, 2000September 28, 200185,54018,885
PeruMarch 12, 2001March 11, 2002128,000128,000
Sri LankaApril 20, 2001June 19, 2002200,00096,650
TurkeyDecember 22, 1999December 21, 20028,676,00034,742,900
UruguayMay 31, 2000March 31, 2002150,000150,000
Total Stand-By Arrangements34,905,65018,637,089
Extended Arrangements
BulgariaSeptember 25, 1998September 24, 2001627,62052,320
ColombiaDecember 20, 1999December 19, 20021,957,0001,957,000
IndonesiaFebruary 4, 2000December 31, 20023,638,0002,786,850
JordanApril 15, 1999April 14, 2002127,88091,340
Kazakhstan, Republic ofDecember 13, 1999December 12, 2002329,100329,100
Macedonia, formerNovember 29, 2000November 28, 200324,11522,967
Yugoslav Republic of
UkraineSeptember 4, 1998August 15, 20021,919,9501,017,730
Yemen, Republic ofOctober 29, 1997October 28, 200172,90026,400
Total Extended Arrangements8,696,5656,283,707
Total General Resources Account43,602,21524,920,796

Includes SDR 2.1 billion available until January 11, 2002 under the Supplemental Reserve Facility.

Amount agreed and undrawn balance include SDR 9.1 billion and SDR 2.6 billion, respectively, under the Supplemental Reserve Facility which expired on December 1, 1999.

Includes SDR 5.8 billion available until December 20, 2001 under the Supplemental Reserve Facility.

Includes SDR 2.1 billion available until January 11, 2002 under the Supplemental Reserve Facility.

Amount agreed and undrawn balance include SDR 9.1 billion and SDR 2.6 billion, respectively, under the Supplemental Reserve Facility which expired on December 1, 1999.

Includes SDR 5.8 billion available until December 20, 2001 under the Supplemental Reserve Facility.

SDR Department

Balance Sheets as at April 30, 2001 and 2000

(In thousands of SDRs)
2001200020012000
AssetsLiabilities
Charges receivable215,387221,228Interest payable215,861221,752
Overdue assessments and charges (Note 3)98,245105,602
Participants with holdings below allocations (Note 2)Participants with holdings above allocations (Note 2)
Allocations12,646,26412,626,280SDR holdings14,690,44014,859,327
Less: SDR holdings3,865,9393,282,008Less: allocations8,787,0668,807,050
Allocations in excess of holdings8,780,3259,344,272Holdings in excess of allocations5,903,3746,052,277
Holdings by the General Resources Account2,436,7442,723,892
Holdings of SDRs by prescribed holders537,978673,181
Total Assets9,093,9579,671,102Total Liabilities9,093,9579,671,102
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
/s/ Eduard Brau/s/ Horst Köhler
TreasurerManaging Director

Income Statements for the Years Ended April 30, 2001 and 2000

(In thousands of SDRs)
20012000
Revenue
Net charges from participants with holdings below allocations400,216362,278
Assessments on SDR allocations2,4513,301
402,667365,579
Expenses
Interest on SDR holdings
Net interest to participants with holdings above allocations261,127217,743
General Resources Account112,514123,288
Prescribed holders26,57521,247
400,216362,278
Administrative expenses2,4513,301
402,667365,579
Net Income
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.

Statements of Cash Flows for the Years Ended April 30, 2001 and 2000

(In thousands of SDRs)
20012000
Cash flows from operating activities
Receipts of SDRs
Transfers among participants and prescribed holders6,815,4047,830,549
Transfers from participants to the General Resources Account5,800,2167,094,151
Transfers from the General Resources Account to
participants and prescribed holders6,087,3647,942,226
Total Receipts of SDRs18,702,98422,866,926
Uses of SDRs
Transfers among participants and prescribed holders6,513,8367,616,081
Transfers from participants to the General Resources Account5,682,6876,956,385
Transfers from the General Resources Account to
participants and prescribed holders6,087,3647,942,226
Charges paid in the SDR Department426,404339,278
Other(7,307)12,956
Total Uses of SDRs18,702,98422,866,926
The accompanying notes are an integral part of these financial statements.

Notes to the Financial Statements as at April 30, 2001 and 2000

1. Nature of Operations

The SDR is an international interest-bearing reserve asset created by the IMF following the First Amendment of the Articles of Agreement in 1969. All transactions and operations involving SDRs are conducted through the SDR Department. The SDR was created as a supplement to existing reserve assets and is allocated by the IMF to members participating in the SDR Department. Its value as a reserve asset derives, essentially, from the commitments of participants to hold and accept SDRs and to honor various obligations connected with its proper functioning as a reserve asset.

At April 30, 2001, all members of the IMF were participants in the SDR Department. SDRs have been allocated by the IMF to members that are participants in the SDR Department at the time of the allocation in proportion to their quotas in the IMF. Six allocations have been made (in 1970, 1971, 1972, 1979, 1980, and 1981) for a total of SDR 21.4 billion. A proposed amendment of the IMF’s Articles of Agreement was approved by the Executive Board in January 1998 to allow for a special one-time allocation of SDRs equal to 21.4 billion. The amendment will enter into force after three-fifths of the members, having 85 percent of the total voting power, have accepted it. Upon termination of participation or liquidation of the SDR Department, the IMF will provide to holders the currencies received from the participants in settlement of their obligations. The IMF is empowered to prescribe certain official entities as holders of SDRs; at April 30, 2001, 16 institutions (15 at April 30, 2000) were prescribed as holders. Prescribed holders do not receive allocations.

The SDR is also used by a number of international and regional organizations as a unit of account or as the basis for their units of account. Several international conventions also use the SDR as a unit of account, notably those expressing liability limits for the international transport of goods and services.

Uses of SDRs

Participants and prescribed holders can use and receive SDRs in transactions and operations by agreement among themselves. Participants can also use SDRs in operations and transactions involving the General Resources Account, such as the payment of charges and repurchases. The IMF ensures, by designating participants to provide freely usable currency in exchange for SDRs, that a participant can use its SDRs to obtain an equivalent amount of currency if it has a need because of its balance of payments, its reserve position, or developments in its reserves.

General Allocations and Cancellations of SDRs

The IMF has the authority to create unconditional liquidity through general allocations of SDRs to participants in the SDR Department in proportion to their quotas in the IMF. The IMF cannot allocate SDRs to itself or to other holders it prescribes. The Articles also provide for the cancellation of SDRs, although to date there have been no cancellations. In its decisions on general allocations of SDRs, the IMF, as prescribed under its Articles, has sought to meet the long term global need to supplement existing reserve assets in such a manner as will promote the attainment of the IMF’s purposes and avoid economic stagnation and deflation, as well as excess demand and inflation.

2. Summary of Significant Accounting Policies

Basis of Presentation

The financial statements of the IMF are prepared in accordance with International Accounting Standards (IAS). Specific accounting principles and disclosure practices are explained further below. The preparation of financial statements in conformity with IAS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

In financial year 2001, the IMF elected early adoption of IAS 39, Financial Instruments: Recognition and Measurement. The adoption of IAS 39 had no material effect on the SDR Department’s financial statements.

Unit of Account

The financial statements are expressed in terms of SDRs. The value of the SDR is determined by the IMF each day by summing the values in U.S. dollars, based on market exchange rates, of the currencies in the SDR valuation basket. The IMF reviews the SDR valuation basket every five years. The latest review was completed in October 2000 and the new composition of the SDR valuation basket became effective on January 1, 2001. The value of the SDR in terms of U.S. dollars on the last business day prior to the change (December 29, 2000) was identical under both valuation baskets. The currencies in the basket as of April 30, 2001 and 2000 and their amounts were as follows:

CurrencyAmount
To December 31,

2000
From January 1,

2001
Euro0.426
Euro (Germany)0.228
Euro (France)0.1239
Japanese yen27.221.0
Pound sterling0.1050.0984
U.S. dollar0.58210.577

As of April 30, 2001, one SDR was equal to 1.26579 U.S. dollars (one SDR was equal to 1.31921 U.S. dollars as of April 30, 2000).

Allocations and Holdings

At April 30, 2001 and 2000, IMF net cumulative allocations to participants totaled SDR 21.4 billion. Participants with holdings in excess of their allocations have established a net claim on the SDR Department, which is represented on the balance sheet as a liability. Participants with holdings below their allocations have used part of their allocations, which results in a net obligation to the SDR Department and is presented as an asset of the SDR Department. Participants’ net SDR positions as of April 30, 2001 and 2000 were as follows:

20012000
TotalBelow

Allocations
Above

Allocations
TotalBelow

Allocations
Above

Allocations
In millions of SDRs
Cumulative allocations21,433.312,646.38,787.021,433.312,626.38,807.0
Holdings of SDRs by participants18,556.43,866.014,690.418,141.33,282.014,859.3
Net SDR positions2,876.98,780.3(5,903.4)3,292.09,344.3(6,052.3)

A summary of SDR holdings is provided below:

20012000
In millions of SDRs
Participants18,556.418,141.3
General Resources Account2,436.72,723.9
Prescribed holders538.0673.2
21,531.121,538.4
Less: Overdue charges receivable97.8105.1
Total holdings21,433.321,433.3

Administrative Expenses

The expenses of conducting the business of the SDR Department are paid by the IMF from the General Resources Account, which is reimbursed in SDRs by the SDR Department at the end of each financial year. For this purpose, the SDR Department levies an assessment on all participants in proportion to their net cumulative allocations.

Interest and Charges

Interest is paid on holdings of SDRs. Charges are levied on each participant’s cumulative allocations plus any allocations in excess of holdings of the participant and unpaid charges. Interest on SDR holdings is paid quarterly. Charges on net cumulative allocations are also collected quarterly. Interest and charges are levied at the same rate and are settled by crediting and debiting individual holdings accounts on the first day of the subsequent quarter. The SDR Department is required to pay interest to each holder, whether or not sufficient SDRs are received to meet the payment of interest. If sufficient SDRs are not received because charges are overdue, additional SDRs are temporarily created.

The rate of interest on the SDR is determined by reference to a combined market interest rate, which is a weighted average of yields or rates on short-term instruments in the capital markets of France, Germany, Japan, the United Kingdom, and the United States. The combined market interest rate used to determine the SDR interest rate is calculated each Friday, using the yields or rates of that day. The SDR interest rate, which is set equal to the combined market interest rate, enters into effect on the following Monday and applies through the following Sunday.

Overdue Obligations

An allowance for losses resulting from overdue SDR obligations would be created if and when the IMF were to expect a loss to be incurred; no losses have been incurred in the past, and it is the current expectation that no losses will be incurred in the future, and consequently no allowance account has been established.

3. Overdue Assessments and Charges

At April 30, 2001, assessments and charges amounting to SDR 98.2 million were overdue to the SDR Department (SDR 105.6 million at April 30, 2000). At April 30, 2001 and 2000, six members were six months or more overdue in meeting their financial obligations to the SDR Department. The Federal Republic of Yugoslavia (Serbia/Montenegro) notified the IMF in January 1993 that it agreed to its share in the assets and liabilities of the former Socialist Federal Republic of Yugoslavia (SFRY) in the IMF. On December 20, 2000, the IMF’s Executive Board concluded that the Federal Republic of Yugoslavia (Serbia/Montenegro) is able to fulfill its obligations under the Articles of Agreement and therefore succeeds to the membership in the IMF effective December 14, 1992. On December 20, 2000, the Federal Republic of Yugoslavia (Serbia/Montenegro) settled its overdue charges and assessments.

Assessments and charges due from members that are six months or more overdue to the SDR Department were as follows:

20012000
In millions of SDRs
Total98.2105.6
Overdue for six months or more91.098.7
Overdue for three years or more63.665.0

The amount and duration of arrears as of April 30, 2001 were as follows:

TotalLongest Overdue

Obligation
In millions of SDRs
Afghanistan, Islamic State of6.2February 1996
Congo, Democratic Republic of16.1April 1992
Iraq45.9November 1990
Liberia21.2April 1986
Somalia8.7February 1991
Sudan0.1April 1991
Total98.2

Schedule 1 Statements of Changes in SDR Holdings for the Years Ended April 30, 2001 and 2000

(In thousands of SDRs)
ParticipantsGeneral

Resources

Account
Prescribed

Holders
Total
20012000
Total holdings, beginning of the year18,141,3352,723,892673,18121,538,40821,525,452
Receipts of SDRs
Transfers among participants and prescribed holders
Transactions by agreement4,961,03885,4295,046,4676,639,441
Operations
Grants44,614
Loans165,619165,61945,975
Settlement of financial obligations295,85082,721378,571202,367
IMF-related operations
SAF and PRGF loans111,544111,544135,811
SAF loans under PRGF Trust24,94024,940
SAP repayments and interest15,21415,21429,069
Special charges on SAF, PRGF, Trust Fund3349
PRGF contributions and payments200,741117,871318,612123,121
PRGF repayments and interest294,456294,456338,877
PRGF-HIPC contributions and payments215153,643153,85856,757
SCA-2 refunds1,1991,199
HIPC payments3,3523,352
Net interest on SDRs275,50026,069301,569214,468
Transfers from participants to the General Resources Account
Repurchases3,198,5923,198,5923,825,681
Charges2,417,1442,417,1442,599,820
Quota payments64,50064,500527,633
Interest on SDRs117,529117,529137,766
Assessments on SDR allocations2,4512,4513,251
Transfers from the General Resources Account to
participants and prescribed holders
Purchases3,165,7133,165,7133,591,759
Interest on IMF borrowings18,284
In exchange for currencies of other members
Acquisitions to pay charges1,107,4571,107,4571,577,214
Remuneration1,782,7901,782,7901,747,437
SCA-2 transfers
PRGF-HIPC70,556
HIPC227,211
Post-SCA-2287,158
Refunds394,350
Other
Refunds and adjustments31,40431,40428,257
Total receipts12,127,3625,800,216775,40618,702,98422,866,926
Uses of SDRs
Transfers among participants and prescribed holders
Transactions by agreement4,750,301296,1665,046,4676,639,441
Operations
Grants44,614
Loans165,619165,61945,975
Settlement of financial obligations248,340130,231378,571202,367
IMF-related operations
SAP and PRGF loans111,544111,544135,811
SAF loans under PRGF Trust24,94024,940
SAP repayments and interest15,21415,21429,069
Special charges on SAF, PRGF, Trust Fund3349
PRGF contributions and payments117,871200,741318,612123,121
PRGF repayments and interest294,456294,456338,877
PRGF-HIPC contributions and payments11,422142,436153,85856,757
SCA-2 refunds1,1991,199
HIPC payments3,3523,352
Transfers from participants to the General Resources
Account
Repurchases3,198,5923,198,5923,825,681
Charges2,417,1442,417,1442,599,820
Quota payments64,50064,500527,633
Assessment on SDR allocation2,4512,4513,251
Transfers from the General Resources Account to
participants and prescribed holders
Purchases3,165,7133,165,7133,591,759
Interest on IMF borrowings18,284
In exchange for currencies of other members
Acquisitions to pay charges1,107,4571,107,4571,577,214
Remuneration1,782,7901,782,7901,747,437
SCA-2 transfers
PRGF-HIPC70,556
HIPC227,211
Post-SCA-2287,158
Refunds394,350
Other
Refunds and adjustments31,40431,40428,257
Charges paid in the SDR department
Net charges due419,098419,098352,234
Total uses11,705,0116,087,364910,60918,702,98422,866,926
Charges not paid when due17,27417,27415,296
Settlement of unpaid charges(24,581)(24,581)(2,340)
Total holdings, end of the year18,556,3792,436,744537,97821,531,10121,538,408

Schedule 2 Allocations and Holdings of Participants as at April 30, 2001

(In thousands of SDRs)
ParticipantNet

Cumulative

Allocations
Holdings
TotalPercent of

Cumulative

Allocations
Above

(Below)

Allocations
Afghanistan, Islamic State of26,703(26,703)
Albania63,12963,129
Algeria128,6405,7884.5(122,852)
Angola135135
Antigua and Barbuda55
Argentina318,37089,04328(229,327)
Armenia, Republic of14,98014,980
Australia470,54576,12216.2(394,423)
Austria179,045123,76569.1(55,280)
Azerbaijan1,0071,007
Bahamas, The10,230930.9(10,137)
Bahrain6,20098115.8(5,219)
Bangladesh47,1202,0614.4(45,059)
Barbados8,039911.1(7,948)
Belarus, Republic of485,2461,0501,050
Belgium346,60471.4(138,642)
Belize9,4091,2501,250
Benin2432.6(9,166)
Bhutan26,703186186
Bolivia20,48127,300102.2597
Bosnia and Herzegovina4,3596,97134(13,510)
Botswana358,67030,376696.926,017
Brazil22,2966.2(336,374)
Brunei Darussalam5,4065,406
Bulgaria9,40952,47952,479
Burkina Faso13,6975515.9(8,858)
Burundi15,4171511.1(13,546)
Cambodia24,4633892.5(15,028)
Cameroon7792511(24,212)
Canada779,290454,35958.3(324,931)
Cape Verde620315(589)
Central African Republic9,32595I(9,230)
Chad9,409981(9,311)
Chile121,92420,10416.5(101,820)
China236,800627,194264.9390,394
Colombia114,271106,01392.8(8,258)
Comoros716141.9(702)
Congo, Democratic Republic of86,309(86,309)
Congo, Republic of9,7193333.4(9,386)
Costa Rica23,7261970.8(23,529)
Côte d’Ivoire37,8281,5564.1(36,272)
Croatia, Republic of44,205100,744227.956,539
Cyprus19,4388844.5(18,554)
Czech Republic241241
Denmark178,864106,14459.3(72,720)
Djibouti1,178705.9(1,108)
Dominica59271.1(585)
Dominican Republic31,5851,0983.5(30,487)
Ecuador32,9292,1366.5(30,793)
Egypt135,92421,26015.6(114,664)
El Salvador24,98524,982100(3)
Equatorial Guinea5,8121512.6(5,661)
Eritrea
Estonia, Republic of168168
Ethiopia11,1601361.2(11,024)
Fiji6,9584,57265.7(2,386)
Finland142,690131,65592.3(11,035)
France1,079,870333,19030.9(746,680)
Gabon14,0911,0307.3(13,061)
Gambia, The5,121571.1(5,064)
Georgia437437
Germany1,210,7601,352,565111.7141,805
Ghana62,9839211.5(62,062)
Greece103,5444,8484.7(98,696)
Grenada93020.2(928)
Guatemala27,6787,28126.3(20,397)
Guinea17,604910.5(17,513)
Guinea-Bissau1,21226822.1(944)
Guyana14,5306,84247.1(7,688)
Haiti13,6974113(13,286)
Honduras19,0579304.9(18,127)
Hungary11,25611,256
Iceland16,4091520.9(16,257)
India681,1707,7361.1(673,434;
Indonesia238,956107,53345(131,423)
Iran, Islamic Republic of244,056267,735109.723,679
Iraq68,464(68,464)
Ireland87,26338,89944.6(48,364
Israel106,3601,2581.2(105,102)
Italy702,400206,78529.4(495,615)
Jamaica40,6131,1622.9(39,451)
Japan891,6901,856,665208.2964,975
Jordan16,8874,63327.4(12,254)
Kazakhstan, Republic of7474
Kenya36,9902,7827.5(34,208)
Kiribati99
Korea72,91141,01956.3(31,892 i
Kuwait26,74474,382278.147,638
Kyrgyz Republic1,6491,649
Lao People’s Democratic Republic9,4095,34556.8(4,064)
Latvia, Republic of352352
Lebanon4,39318,562422.514,169
Lesotho3,73949313.2(3,246)
Liberia21,007(21,007)
Libya58,771421,426717.1362,655
Lithuania, Republic of887887
Luxembourg16,9553,63121.4(13,324)
Macedonia, former Yugoslav Republic of8,3792,27327.1(6,106)
Madagascar19,2702541.3(19,016)
Malawi10,9752842.6(10,691)
Malaysia139,04886,56262.3(52,486)
Maldives28221576.3(67)
Mali15,9123322.1(15,580)
Malta11,28825,077222.213,789
Marshall Islands
Mauritania9,7191721.8(9,547)
Mauritius15,74416,562105.2818
Mexico290,020282,77097.5(7,250)
Micronesia, Federated States of1,1191,119
Moldova, Republic of150150
Mongolia1515
Morocco85,68989,325104.23,636
Mozambique5050
Myanmar43,4744951.1(42,979)
Namibia1616
Nepal8,105881.1(8,017)
Netherlands530,340531,473100.21,133
New Zealand141,32210,6827.6(130,640)
Nicaragua19,4832641.4(19,219)
Niger9,4091,17312.5(8,236)
Nigeria157,1551,8861.2(155,269)
Norway167,770208,513124.340,743
Oman6,2623,64058.1(2,622)
Pakistan169,98913,7478.1(156,242)
Palau
Panama26,3221,7246.5(24,598)
Papua New Guinea9,3008,77494.3(526)
Paraguay13,69779,43958065,742
Peru91,3196,5617.2(84,758)
Philippines116,5955,1344.4(111,461)
Poland, Republic of15,18815,188
Portugal53,32043,62881.8(9,692)
Qatar12,82216,338127.43,516
Romania75,9506,2028.2(69,748)
Russian Federation2,5662,566
Rwanda13,6974973.6(13,200)
St. Kitts and Nevis2121
St. Lucia7421,441194.4699
St. Vincent and the Grenadines3545816.5(296)
Samoa1,1422,308202.11,166
San Marino, Republic of240240
São Tomé & Príncipe620(620)
Saudi Arabia195,527157,22780.4(38,300)
Senegal24,4624,06516.6(20,397)
Seychelles406297.1(377)
Sierra Leone17.4559065.2(16,549)
Singapore16,475109,015661.792,540
Slovak Republic472472
Slovenia, Republic of25,4313,18512.5(22,246)
Solomon Islands6541.1(647)
Somalia13,697(13,697)
South Africa220,360222,5021012,142
Spain298,805258,41186.5(40,394)
Sri Lanka70,8681,3591.9(69,509)
Sudan52,192(52,192)
Suriname7,7501,70722(6,043)
Swaziland6,4322,44338(3,989)
Sweden246,525193,99578.7(52,530)
Switzerland83,73083,730
Syrian Arab Republic36,3643771(36,187)
Tajikistan, Republic of9,0149,014
Tanzania31,3724171.3(30,955)
Thailand84,65245,02753.2(39,625)
Togo10,9752722.5(10,703)
Tonga113113
Trinidad and Tobago46,2315351.2(45,696)
Tunisia34,24335,823104.61,580
Turkey112,30775,67867.4(36,629)
Turkmenistan, Republic of
Uganda29,3961,7215.9(27,675)
Ukraine33,17133,171
United Arab Emirates38,7372,7247(36,013)
United Kingdom1,913,070224,40111.7(1,688,669)
United States4,899,5308,232,2781683,332,748
Uruguay49,9771,9994(47,978)
Uzbekistan, Republic of1,8681,868
Vanuatu727727
Venezuela316,89021,4246.8(295,466)
Vietnam47,6587,01314.7(40,645)
Yemen, Republic of28,74340,23714011,494
Yugoslavia, Federal Republic of (Serbia/Montenegro)56,66513,32923.5(43,336)
Zambia68,29841,50260.8(26,796)
Zimbabwe10,2001781.7(10,022)
Above allocations8,787,06614,690,440167.25,903,374
Below allocations12,646,2643,865,93930.6(8,780,325)
Total participants21,433,33018,556,379
General Resources Account2,436,744
Prescribed holders537,978
Overdue charges97,771
21,531,10121,531,101

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Auditor’s Report

To the Board of Governors of the International Monetary Fund:

We have audited the accompanying balance sheets as at April 30, 2001 and 2000, and the related statements of income and changes in resources for the years then ended of the following entities:

Poverty Reduction and Growth Facility Trust

Poverty Reduction and Growth Facility Administered Accounts

  • — Austria,

  • — Belgium,

  • — Botswana,

  • — Chile,

  • — Greece,

  • — Indonesia,

  • — Islamic Republic of Iran,

  • — Portugal.

Poverty Reduction and Growth Facility – Heavily Indebted Poor Countries Trust and Related Accounts Other Administered Accounts

  • — Administered Account Japan,

  • — Administered Account for Selected Fund Activities – Japan,

  • — Framework Administered Account for Technical Assistance Activities,

  • — Administered Account – Spain,

  • — Administered Account for Rwanda,

  • — Supplementary Financing Facility Subsidy Account.

These financial statements are the responsibility of the management of the International Monetary Fund, as trustee of the entities listed above. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with International Standards on Auditing. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above give a true and fair view of the financial position of the entities listed above as at April 30, 2001 and 2000, and the results of their operations for the years then ended in conformity with International Accounting Standards.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on pages 210 to 213 and 225 to 229 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplementary information has been subjected to the auditing procedures applied in the audits of the respective financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the financial statements taken as a whole.

June 6, 2001

Poverty Reduction and Growth Facility Trust

Combined Balance Sheets as at April 30, 2001 and 2000

(In thousands of SDRs)
20012000
Assets
Cash and cash equivalents860,357346,144
Investments (Note 3)4,178,2574,463,020
Loans receivable (Note 4)5,899,4785,769,166
Interest receivable18,71617,774
Total Assets10,956,80810,596,104
Liabilities and Resources
Borrowings (Note 5)6,352,8416,223,794
Interest payable72,68666,391
Other liabilities12,506193
Total Liabilities6,438,0336,290,378
Resources4,518,7754,305,726
Total Liabilities and Resources10,956,80810,596,104
/s/ Eduard Brau/s/ Horst Köhler
TreasurerManaging Director

Combined Income Statements and Changes in Resources for the Years Ended April 30, 2001 and 2000

(In thousands of SDRs)
20012000
Balance, beginning of the year4,305,7264,098,988
Investment income (Note 3)272,465162,189
Interest on loans28,91629,080
Interest expense(239,603)(199,452)
Other expenses(1,645)(193)
Operational income (loss)60,133(8,376)
Contributions (Note 6)126,992115.809
187,125107,433
Transfers from the Special
Disbursement Account80,924168,572
Transfers through the Special
Disbursement Account to the
PRGF-HIPC Trust (Note 8)(55,000)(69,267)
Net changes in resources213,049206,738
Balance, end of the year4,518,7754,305,726
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.

Notes to the Financial Statements as at April 30, 2001 and 2000

1. Nature of Operations

The name of the Enhanced Structural Adjustment Facility Trust was changed to the Poverty Reduction and Growth Facility Trust (“the Trust” or “PRGF Trust”) on November 22, 1999. The PRGF Trust, for which the IMF is Trustee, was established in December 1987 and was extended and enlarged in February 1994 to provide loans on concessional terms to qualifying low-income developing country members. The resources of the Trust are held separately from the assets of all other accounts of, or administered by, the IMF and may not be used to discharge liabilities or to meet losses incurred in the administration of other accounts.

The operations of the Trust are conducted through a Loan Account, a Reserve Account, and a Subsidy Account. Combining balance sheets and income statements and statements of changes in resources for each of these accounts are provided in Note 9 to these financial statements.

Loan Account

The resources of the Loan Account consist of the proceeds from borrowings, repayments of principal, and interest payments on loans extended by the Trust. At April 30, 2001, loans totaling SDR 5,899.5 million were outstanding (SDR 5,769.2 million at April 30, 2000).

Reserve Account

The resources of the Reserve Account consist of amounts transferred by the IMF from the Special Disbursement Account and net earnings from investment of resources held in the Reserve Account and in the Loan Account.

The resources held in the Reserve Account are to be used by the Trustee, in the event that amounts payable from borrowers’ principal repayments and interest, together with the authorized interest subsidy, are insufficient to repay loan principal and interest on borrowings of the Loan Account.

Subsidy Account

The resources held in the Subsidy Account consist of donations to the Trust, including transfers of net earnings from PRGF Administered Accounts (formerly ESAF Administered Accounts), SDR 400 million transferred by the IMF from the Special Disbursement Account, net earnings on loans made to the Trust for the Subsidy Account, and the net earnings from investment of Subsidy Account resources.

The resources available in the Subsidy Account are drawn by the Trustee to pay the difference, with respect to each interest period, between the interest due from the borrowers under the Trust and the interest due on Loan Account borrowings.

2. Summary of Significant Accounting Policies

Basis of Presentation

The financial statements of the PRGF Trust arc prepared in accordance with International Accounting Standards (IAS). Specific accounting principles and disclosure practices are explained further below. The preparation of financial statements in conformity with IAS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

In financial year 2001, the IMF elected early adoption of IAS 39, Financial Instruments: Recognition and Measurement. The adoption of IAS 39 had no material effect on the PRGF Trust’s financial statements.

Revenue and Expense Recognition

The financial statements of the Trust are maintained on the accrual basis; accordingly, income is recognized as it is earned, and expenses are recorded as they are incurred.

Unit of Account

The financial statements are expressed in terms of SDRs. The value of the SDR is determined by the IMF each day by summing the values in U.S. dollars, based on market exchange rates, of the currencies in the SDR valuation basket. The IMF reviews the SDR valuation basket every five years. The latest review was completed in October 2000 and the new composition of the SDR valuation basket became effective on January 1, 2001. The value of the SDR in terms of U.S. dollars on the last business day prior to the change (December 29, 2000) was identical under both valuation baskets. The currencies in the basket as of April 30, 2001 and 2000 and their amounts were as follows:

CurrencyAmount
To December 31,

2000
From January 1,

2001
Euro0.426
Euro (Germany)0.228
Euro (France)0.1239
Japanese yen27.221.0
Pound sterling0.1050.0984
U.S. dollar0.58210.577

As of April 30, 2001, one SDR was equal to 1.26579 U.S. dollars (one SDR was equal to 1.31921 U.S. dollars as of April 30, 2000).

Cash and Cash Equivalents

Cash and cash equivalents include short-term deposits with a maturity of less than ninety days. These deposits are denominated in SDRs or other currency and are carried at cost, not exceeding market value. Interest received on these instruments varies and is based on prevailing market rates.

Investments

The resources of the Trust are invested pending their use. The Trust invests in debt securities and fixed-term deposits, either directly or by participation in an investment pool. Investments are marked to market on the last business day of the accounting period. Purchases are valued and reflected on the trade date basis and sales are based on the actual settlement date valuations. Investment income comprises interest earned on investments, realized and unrealized gains and losses on investments, and currency valuation differences arising from exchange rate movements against the SDR.

Interest rate risk is managed by limiting the investment portfolio to a weighted-average effective duration that does not exceed three years. Currency risk is minimized by investing in securities denominated in SDRs or in the constituent currencies of the SDR basket. Risk is further minimized by ensuring that the currency composition of the investment portfolio matches, as closely as possible, the currency composition of the SDR basket.

Loans

Loans in the Trust are valued at historical cost. Allowances for loan losses would be established if and when the Trust expects to incur a loss; no losses have been incurred in the past, and it is the current expectation that no losses will be incurred in the future.

Contributions

Bilateral contributions are reflected as increases in resources after the achievement of specified conditions and are subject to bilateral agreements stipulating how the resources are to be used.

Transfers

Internal transfers of resources within the Fund are accounted for under the accrual method of accounting.

Foreign Currency Translation

Foreign currency transactions are recorded at the rate of exchange on the date of the transaction. At the balance sheet date, monetary assets and liabilities denominated in foreign currencies are reported using the closing exchange rates. Exchange differences arising on the settlement of transactions at rates different from those at the originating date of the transaction and unrealized foreign exchange differences on unsettled foreign currency monetary assets and liabilities are included in the determination of net income.

3. Investments

The maturities of the investments are as follows:

Maturity as at April 3020012000
In thousands of SDRs
Less than 1 year425,548678,879
1–3 years3,430,6433,622,498
3–5 years297,516129,360
Over 5 years24,55032,283
Total4,178,2574,463,020

At April 30, the investments consisted of the following:

20012000
In thousands of SDRs
Debt securities3,962,7293,961,249
Fixed-term deposits215,528501,771
Total4,178,2574,463,020

At April 30, investment income comprised:

20012000
In thousands of SDRs
Interest income242,912166,647
Realized(losses)/gains net(76,692)412
Unrealized gains/(losses) net107,979(4,830)
Exchange rate
losses net(1,734)(40)
Total272,465162,189

4. Loans Receivable

Resources of the Loan Account are committed to qualifying members for a three-year period, upon approval by the Trustee of a three-year arrangement in support of the member’s macroeconomic and structural adjustment programs. Interest on the outstanding loan balances is currently set at the rate of ½ of 1 percent a year. Scheduled repayments of loans by borrowers are summarized below:

Period of

Repayment,

Financial Year

Ending April 30
In thousands of SDRs
2002680,726
2003722,241
2004834,998
2005876,190
2006860,129
2007 and beyond1,913,046
Overdue12,148
Total5,899,478

The above includes one member that is overdue at the end of financial year 2001 for less than six months for an amount of SDR 12.1 million.

As of April 30, 2001 and 2000, use of credit in the Trust by the largest users was as follows:

20012000
In millions of SDRs

and percent of total PRCGF credit
Largest user of credit716.612.2%671.711.6%
Three largest users of credit1,508.225.6%1,527.326.5%
Five largest users of credit2,039.234.6%2,028.135.1%

5. Borrowings

The following summarizes the borrowing agreements concluded as of April 30, 2001 and 2000:

Amount Undrawn
20012000
In thousands of SDRs
Loan Account3,448,2483,599,974
Subsidy Account4,6645,331

The Trustee has agreed to hold and invest, on behalf of a lender, principal repayments of Trust borrowing in a suspense account within the Loan Account. Principal repayments will be accumulated until the final maturity of the borrowing, when the full proceeds are to be transferred to the lender. Amounts deposited in this account are invested by the Trustee, and payments of interest to the lender are to be made exclusively from the earnings on the amounts invested.

The Trust borrows on such terms and conditions as agreed between the Trust and the lenders. Interest rates on borrowings at April 30, 2001 and April 30, 2000 varied between 3.7 percent and 4.9 percent a year. The principal amounts of the borrowings are repayable in one installment at maturity dates.

Scheduled repayments of borrowings are summarized below:

Period of

Repayment,

financial Year

Ending April 30
In thousands of SDRs
2002513,827
2002525,455
2004704,176
2005953,566
20061,504,589
2007 and beyond2,151,228
Total6,552,841

6. Contributions

The Trustee accepts contributions for the Subsidy Account on such terms and conditions as agreed between the Trust and the contributor. At April 30, 2001, cumulative contributions received, including transfers from the Special Disbursement Account, amounted to SDR 2,292.4 million (SDR 2,165.4 million at April 30, 2000).

7. Commitments Under Loon Arrangements

An arrangement is a decision of the IMF that gives a member the assurance that the institution stands ready to provide foreign exchange or SDRs during a specified period and up to a specified amount in accordance with the terms of the decision. At April 30, 2001, undrawn balances under 37 arrangements amounted to SDR 1,997.3 million (SDR 2,017.9 million under 31 arrangements at April 30, 2000).

8. Transfers Through the Special Disbursement Account

The expenses of conducting the business of the Trust are paid by the General Resources Account of the IMF and reimbursed by the Reserve Account of the Trust through the Special Disbursement Account; corresponding transfers are made from the Reserve Account to the Special Disbursement Account when and to the extent needed. For financial years 2001 and 2000, the Executive Board of the IMF decided to forgo such reimbursement to the General Department and to transfer an equivalent amount from the Reserve Account, through the Special Disbursement Account, to the PRGF-HIPC Trust (formerly ESAF-HIPC Trust). The amounts transferred for financial years 2001 and 2000 were SDR 55.0 million and SDR 46.1 million, respectively.

Resources of up to SDR 250 million may be transferred, as needed, from the Reserve Account through the Special Disbursement Account to the PRGF-HIPC Trust to be used to provide grant or loans to eligible members under the HIPC initiative. At April 30, 2001 and 2000, SDR 43.5 million had been transferred for this purpose.

9. Combining Balance Sheets, Income Statements, and Statements of Resources

The balance sheets and income statements and changes in resources for each of the accounts in the PRGF Trust are presented on the next page:

Note 9 Combining Balance Sheets as at April 30, 2001 and 2000

(In thousands of SDRs)
Loan AccountReserve AccountSubsidy AccountCombined
20012000200120002001200020012000
Assets
Cash and cash equivalents159,594519,695258,291181,06887,853860,357346,144
Investments (Note 3)215,529357,0492,200,5082,280,5431,762,2201,825,4284,178,2574,463,020
Loans receivable (Note 4)5,899,4785,769,1665,899,4785,769,166
Accrued account transfers27,23131,25830,64716,579(57,878)(47,837)
Interest receivable13,24512,8055,1193,0753521,89418,71617,774
Total Assets6,315,0776,170,2782,755,9692,558,4881,885,7621,867,33810,956,80810,596,104
Liabilities and Resources
Borrowings (Note 5)6,244,0246,105,644108,817118,1506,352,8416,223,794
Interest payable71,02264,6121,6641,77972,68666,391
Other liabilities312212,4751343712,506193
Total Liabilities6,315,0776,170,27812,475134110,481119,9666,438,0336,290,378
Resources2,743,4942,558,3541,775,2811,747,3724,518,7754,305,726
Total Liabilities and Resources6,315,0776,170,2782,755,9692,558,4881,885,7621,867,33810,956,80810,596,104

Combining Income Statements and Changes in Resources for the Years Ended April 30, 2001 and 2000

(In thousands of SDRs)
Loan AccountReserve AccountSubsidy AccountCombined
20012000200120002001200020012000
Balance, beginning of the year2,558,3542,370,6061,747,3721,728,3824,305,7264,098,988
Investment income (Note 3)28267155,82993,369116,60868,553272,465162,189
Interest on loans28,91629,08028,91629,080
Interest expense(237,524)(197,202)(2,079)(2,250)(239,603)(199,452)
Other expenses(82)(22)(1,563)(134)(37)(1,645)(193)
Operational (loss) income(208,662)(167,877)154,26693,235114,52966,26660,133(8,376)
Contributions (Note 6)126,992115,809126,992115,809
(208,662)(167,877)154,26693,235241,521182,075187,125107,439
Transfers from the Special
Disbursement Account (Note 8)80,924168,57280,924168,572
Transfers through the Special
Disbursement Account to the
PRGF-HIPC Trust (Note 8)(55,000)(69,267)(55,000)(69,267)
Transfers between:
Reserve and Subsidy Accounts(3,891)1,059(1,059)
Loan and Reserve Accounts212,5534,7923,891(4,792)
Loan and Subsidy Accounts163,085(212,553)(163,085)
Net changes in resources185,140187,74827,90918,990213,049206,738
Balance, end of the year2,743,4942,558,3541,775,2811,747,3724,518,7754,305,726

Schedule 1 Schedule of Outstanding Loans as at April 30, 2001

(In thousands of SDRs)
MemberPRGF Loan AccountStructural

Adjustment Facility1
BalancePercentBalancePercent
Albania60,9481.03
Armenia, Republic of109,3501.85
Azerbaijan81,9001.39
Bangladesh54,5620.92
Benin60,9381.034,0890.95
Bolivia165,1342.80
Burkina Faso78,5781.339,7962.27
Burundi5,3760.09
Cambodia58,6710.99
Cameroon178,0403.02
Central African Republic24,4800.41_
Chad59,1541.00
Comoros9000.21
Congo, Democratic Republic of142,91033.08
Congo, Republic of13,8960.24
Côte d’lvoire415,6597.05
Djibouti5,4520.09
Dominica
Equatorial Guinea7700.012,7270.63
Ethiopia46,8710.7926,8426.21
Gambia, The13,8320.23
Georgia190,0503.22
Ghana214,9123.64
Guinea93,6271.59
Guinea-Bissau15,2650.26
Guyana79,3361.348,1181.88
Haiti15,1750.26
Honduras115,8801.96
Kenya93,7091.59
Kyrgyz Republic127,1642.16
Lao People’s Democratic Republic33,2690.561,7580.41
Lesotho10,4460.18
Macedonia, former Yugoslav Republic of29,0040.49
Madagascar90,0271.53
Malawi60,5431.03
Mali123,7602.104,0640.94
Mauritania76,1031.291,3640.32
Moldova, Republic of18,4800.31
Mongolia37,6570.64
Mozambique163,8902.78
Nepal7,8330.13
Nicaragua129,3342.19
Niger56,7600.96
Pakistan375,8006.3721,8525.05
Rwanda52,3600.89
São Tomé and Príncipe1,9020.03
Senegal207,1563.528300.19
Sierra Leone70,4371.1916,2123.75
Somalia8,8402.04
Sri Lanka100,8001.71
Tajikistan, Republic of72,2801.23
Tanzania266,2004.51
Togo52,2600.89
Uganda242,4404.11
Vietnam264,8804.50
Yemen, Republic of170,0002.88
Zambia716,62212.16181,75042.07
Zimbabwe90,5201.53
Total loans outstanding5,899,478100,00432,052100,00

Since Structural Adjustment Facility (SAF) loans have been disbursed in connection with PRGF arrangements, the above list includes these loans, as well as loans disbursed to members under SAF arrangements. These loans are held by the Special Disbursement Account, and repayments of all SAF loans are transferred to the PRGF Reserve Account when received.

Since Structural Adjustment Facility (SAF) loans have been disbursed in connection with PRGF arrangements, the above list includes these loans, as well as loans disbursed to members under SAF arrangements. These loans are held by the Special Disbursement Account, and repayments of all SAF loans are transferred to the PRGF Reserve Account when received.

Schedule 2 Contributions to and Resources of the Subsidy Account as at April 30, 2001

(In thousands of SDRs)
Contributor1Amount
Direct Contributions to the Subsidy Account
Argentina15,867
Australia3,446
Bangladesh335
Canada168,897
China6,400
Czech Republic7,000
Denmark38,299
Egypt7,000
Finland22,684
Germany124,638
Iceland2,800
India4,946
Ireland3,325
Italy138,589
Japan506,997
Korea30,559
Luxembourg5,975
Morocco5,003
Netherlands81,538
Norway28,073
Sweden110,887
Switzerland24,720
Turkey3,000
United Kingdom285,182
United States118,893
Total direct contributions to the Subsidy Account1,745,053
Net income transferred from Administered Accounts
Austria37,754
Belgium73,275
Botswana1,239
Chile2,910
Greece24,720
Indonesia4,018
Iran, Islamic Republic of986
Portugal2,418
Total net income transferred from Administered Accounts147,320
Total contributions received1,892,373
Transfers from Special Disbursement Account400,000
Total contributions received and transfers from Special
Disbursement Account2,292,373
Cumulative net income of the Subsidy Account705,057
Resources disbursed to subsidize Trust lending(1,222,149)
Total resources of the Subsidy Account1,775,281

In addition to direct contributions, a number of members also make loans available to the Loan Account on concessional terms. See Schedule 3.

In addition to direct contributions, a number of members also make loans available to the Loan Account on concessional terms. See Schedule 3.

Schedule 3 Schedule of Borrowing Agreements as at April 30, 2001

(In thousands of SDRs)
MemberInterest

Rate

(in percent)
Amount of

Agreement
Amount

Drawn
Outstanding

Balance
Loan Account
Prior to enlargement of PRGF
CanadaFixed 1300,000300,000205,576
France0.50 2800,000800,000396,935
GermanyVariable 3700,000700,000421,428
ItalyVariable 3370,000370,000250,656
JapanVariable 32,200,0002,200,0001,506,504
KoreaVariable 365,00065,00034,808
NorwayVariable 390,00090,00053,521
SpainVariable 3220,000216,429467,022
Switzerland200,000200,000
Total prior to enlargement of PRGF4,945,0004,941,4292,936,250
For enlargement of PRGF
BelgiumVariable 3200,000166,651166,651
CanadaVariable 3400,000218,167218,166
ChinaVariable 3100,00095,50595,505
DenmarkVariable 3100,000
EgyptVariable 3100,00097,16797,166
FranceVariable 31,100,000534,288534,288
GermanyVariable 31,050,000325,884325,884
ItalyVariable 3460,000174,735174,735
JapanVariable 32,150,000995,491995,491
KoreaVariable 327,70027,70027,700
NetherlandsVariable 3250,000
NorwayVariable 360,00060,00060,000
OPEC Fund for International
DevelopmentVariable 339,501536,73236,732
Spain0.50192,00048,63348,633
SwitzerlandVariable 3151,700151,700151,700
Total for enlargement of PRGF6,380,9012,932,6532,932,651
Resources held pending repayment6375,1236
Total—Loan Account11,325,9017,874,0826,244,024
Subsidy Account
Malaysia (1994 loans)2.0040,00040,00040,000
Malaysia (1988 and 1989 loans)0.5040,00040,000
Malta0.502,7302,7302,730
Pakistan0.5010,0005,3365,336
Singapore2.0080,00080,00050,000
Thailand2.00760,00060,000
Tunisia0.503,5513,5513,551
UruguayVariable 87,2007,2007,200
Total —Subsidy Account243,481238,817108,817

The loans under this agreement are made at market-related rates of interest fixed at the time the loan was disbursed.

The agreement with France made before the enlargement of PRGF (SDR 800 million) provides that the interest rate shall be 0.5 percent on the first SDR 700 million drawn, and for variable, market-related rates of interest thereafter. The agreement with France made for the enlargement of the PRGF (SDR 750 million) provides that the interest rate shall be 0.5 percent until the cumulative implicit interest subsidy reaches SDR 250 million, and at variable market-related rates of interest thereafter.

The loans under these agreements are made at variable, market-related rates of interest.

The agreement expired with an undrawn balance of SDR 3.6 million.

The agreement with the OPEC Fund for International Development is for an amount of $50 million.

This amount represents principal repayments held and invested on behalf of a lender.

In accordance with the agreement with Thailand, outstanding borrowings were repaid at the the request of Thailand on January 30, 1998.

The interest rate payable on the borrowing from Uruguay is equal to the rate on SDR-denominated deposits less 2.6 percent a year.

The loans under this agreement are made at market-related rates of interest fixed at the time the loan was disbursed.

The agreement with France made before the enlargement of PRGF (SDR 800 million) provides that the interest rate shall be 0.5 percent on the first SDR 700 million drawn, and for variable, market-related rates of interest thereafter. The agreement with France made for the enlargement of the PRGF (SDR 750 million) provides that the interest rate shall be 0.5 percent until the cumulative implicit interest subsidy reaches SDR 250 million, and at variable market-related rates of interest thereafter.

The loans under these agreements are made at variable, market-related rates of interest.

The agreement expired with an undrawn balance of SDR 3.6 million.

The agreement with the OPEC Fund for International Development is for an amount of $50 million.

This amount represents principal repayments held and invested on behalf of a lender.

In accordance with the agreement with Thailand, outstanding borrowings were repaid at the the request of Thailand on January 30, 1998.

The interest rate payable on the borrowing from Uruguay is equal to the rate on SDR-denominated deposits less 2.6 percent a year.

Schedule 4 Status of Loan Arrangements1 as at April 30, 2001

(In thousands of SDRs)
MemberDate of

Arrangement
ExpirationAmount

Agreed
Undrawn

Balance
AlbaniaMay 13, 1998Jul 31, 200145,0404,705
BeninJul. 17, 2000Jul. 16, 200327,00016,160
BoliviaSep. 18, 1998Sep. 17, 2001100,96056,097
Burkina FasoSep. 10, 1999Sep. 9, 200239,12022,350
CambodiaOct. 22, 1999Oct 21, 200258,50033,429
CameroonDec. 21, 2000Dec. 20, 2003111,42095,500
Central African RepublicJul. 20, 1998Jan. 19, 200249,44024,960
ChadJan. 7, 2000Jan. 6, 200536,40026,000
DjiboutiOct. 18, 1999Oct. 17, 200219,08213,630
EthiopiaMar. 22, 2001Mar. 21, 200486,90069,519
Gambia, TheJun. 29, 1998Dec. 31, 200120,6106,870
GeorgiaJan. 12, 2001Jan. 11, 2004108,00090,000
GhanaMay. 3, 1999May. 2, 2002191,900120,848
Guinea-BissauDec. 15, 2000Dec. 14, 200314,2009,120
GuyanaJul. 15, 1998Jul. 14, 200153,76028,880
HondurasMar. 26, 1999Mar 25, 2002156,75064,600
KenyaAug. 4, 2000Aug. 3, 2003190,000156,400
Kyrgyz RepublicJun. 26, 1998Jun. 25, 200173,38028,690
Lao People’s Democratic RepublicApr. 25, 2001Apr 24, 200431,70027,170
LesothoMar. 9, 2001Mar. 8, 200424,50021,000
Macedonia, former Yugoslav Republic ofDec. 18, 2000Dec. 17, 200510,3358,613
MadagascarMar. 1, 2001Feb. 29, 200479,43068,083
MalawiDec. 21, 2000Dec. 20, 200345,11038,670
MaliAug. 6, 1999Aug. 5, 200246,65033,150
MauritaniaJul. 21, 1999Jul. 20, 200242,49024,280
Moldova, Republic ofDec. 21, 2000Dec. 20, 2003110,88092,400
MozambiqueJun. 28, 1999Jun. 27, 200287,20033,600
NicaraguaMar. 18, 1998Mar 17, 3002148,95533,635
NigerDec. 22, 2000Dec. 21. 200359,20050,740
RwandaJun. 24, 1998Jan. 31, 200271,40019,040
São Tomé and PríncipeApr. 28, 2000Apr 28, 20036,6574,755
SenegalApr. 20, 1998Apr. 19, 2002107,01028,536
Tajikistan, Republic ofJun 24, 1998Dec. 24, 2001100,30028,020
TanzaniaApr. 4, 2000Apr 3, 2003135,00075,000
VietnamApr. 13, 2001Apr. 12, 2004290,000248,600
Yemen, Republic ofOct 29, 1997Oct. 28, 2001264,75094,750
ZambiaMar. 25, 1999Mar 28, 2003254,450199,510
3,298,4791,997,310

The Saudi Fund for Development may also provide resources to support arrangements under the PRGF through loans to qualifying members in association with loans under the PRGF. As at April 30, 2001, SDR 49.5 million of such associated loans had been disbursed.

The Saudi Fund for Development may also provide resources to support arrangements under the PRGF through loans to qualifying members in association with loans under the PRGF. As at April 30, 2001, SDR 49.5 million of such associated loans had been disbursed.

Poverty Reduction and Growth Facility Administered Accounts

Balance Sheets as at April 30, 2001 and 2000

(In thousands of SDRs)
AustriaBelgiumBotswanaChile
20012000200120002001200020012000
Assets
Cash and cash equivalents180,413
Investments (Note 3)44,94050,15980,0006,8856,916
Advance payments to the PRGF Subsidy Account2574712448
Interest receivable112,27345
Total assets45,19750,20680,011182,6867,0097,009
Liabilities and Resources
Deposits (Note 4)45,00050,00080,000180,0006,8946,894
Interest payable1972031355115115
Other liabilities3
Total liabilities45,19750,20680,001180,3557,0097,009
Resources102,331
Total Liabilities and Resources45,19750,20680,011182,6867,0097,009
GreeceIndonesiaIran, I.R. ofPortugal
20012000200120002001200020012000
Assets
Cash and cash equivalents
Investments (Note 3)20,96731,60025,00025,0804,9935,01612,69113,188
Advance payments to the PRGF Subsidy Account48324297833
Interest receivable44418635233
Total assets21,01532,04425,51025,4325,0225,04912,76913,221
Liabilities and Resources
Deposits (Note 4)21,00031,50025,00025,0005,0005,00012,70813,146
Interest payable1518150931422236163
Other liabilities2111
Total liabilities21,01531,68325,51025,3155,0225,02312,76913,210
Resources3611172611
Total Liabilities and Resources21,01532,04425,51025,4325,0225,04912,76913,221
The accompanying notes are an integral part of these financial statements.
/s/ Eduard Brau/s/ Horst Köhler
TreasurerManaging Director

Income Statements and Changes in Resources for the Years Ended April 30, 2001 and 2000

(In thousands of SDRs)
AustriaBelgiumBotswanaChile
20012000200120002001200020012000
Balance, beginning of the year2,3313,287557
Investment income3,0771,8936,6207,932431253228
Other expenses(34)(2)(6)
Interest expense on deposits(243)(251)(749)(902)(136)(138)(32)
2,8001,6405,8717,030289115196
Transfers to the:
PRGF Trust Subsidy Account(2,800)(1,640)16(7,986)(289)(115)(753)
PRGF/HIPC Trust Account(8,208)
Net changes in resources(2,321)(956)(557)
Balance, end of the year102,331
GreeceIndonesiaIran, I.R. ofPortugal
20012000200120002001200020012000
Balance, beginning of the year3611,11211727226181147
Investment income2,1436601,625518313184794496
Other expenses(19)(1)(1)(5)(11)
Interest expense on deposits(129)(167)(495)(386)(24)(25)(61)(66)
1,9954921,130131284159722430
Transfers to the:
PRGF Trust Subsidy Account(2,356)(1,243)(1,247)(286)(310)(151)(733)(466)
Net changes in resources(361)(751)(117)(155)(26)8(11)(36)
Balance, end of the year3611172611
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.

Notes to the Financial Statements as at April 30, 2001 and 2000

1. Nature of Operations

The name of the Enhanced Structural Adjustment Facility Administered Accounts was changed to the Poverty Reduction and Growth Facility Administered Accounts (“the Administered Accounts” or “PRGF Administered Accounts”) on November 22, 1999. At the request of certain member countries, the IMF established administered accounts for the benefit of the Subsidy Account of the Poverty Reduction and Growth Facility Trust (the PRGF Trust formerly the Enhanced Structural Adjustment Facility Trust). The administered accounts comprise deposits made by contributors. The difference between interest earned by the administered accounts and the interest payable on deposits is transferred to the Subsidy Account of the PRGF Trust.

The Saudi Fund for Development (SFD) Special Account was established at the request of the SFD to provide supplementary financing in association with loans under the Poverty Reduction and Growth Facility (PRGF). The IMF acts as agent of the SFD. Disbursements from the SFD Special Account are made simultaneously with PRGF disbursements. Payments of interest and principal due to the SFD under associated loans are to be transferred to the SFD.

The resources of each administered account are held separately from the assets of all other accounts of, or administered by, the IMF and may not be used to discharge liabilities or to meet losses incurred in the administration of other accounts.

2. Summary of Significant Accounting Policies

Basis of Presentation

The financial statements of the IMF are prepared in accordance with International Accounting Standards (IAS). Specific accounting principles and disclosure practices are explained further below. The preparation of financial statements in conformity with IAS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

In financial year 2001, the IMF elected early adoption of IAS 39, Financial Instruments: Recognition and Measurement. The adoption of IAS 39 had no material effect on the PRGF Administered Accounts” financial statements.

Revenue and Expense Recognition

The financial statements are maintained on the accrual basis; accordingly, income is recognized as it is earned, and expenses are recorded as they are incurred.

Unit of Account

The financial statements are expressed in terms of SDRs. The value of the SDR is determined by the IMF each day by summing the values in U.S. dollars, based on market exchange rates, of the currencies in the SDR valuation basket. The IMF reviews the SDR valuation basket even’ five years. The latest review was completed in October 2000 and the new composition of the SDR valuation basket became effective on January 1, 2001. The value of the SDR in terms of U.S. dollars on the last business day prior to the change (December 29, 2000) was identical under both valuation baskets. The currencies in the basket as of April 30, 2001 and 2000 and their amounts were as follows:

Amount
CurrencyTo December 31, 2000From January 1, 2001
Euro0.426
Euro (Germany)0.228
Euro (France)0.1239
Japanese yen27.221.0
Pound sterling0.1050.0984
U.S. dollar0.58210.577

As of April 30, 2001, one SDR was equal to 1.26579 U.S. dollars (1.31921 U.S. dollars as of April 30, 2000).

Cash and Cash Equivalents

Cash and cash equivalents include short term deposits with a maturity of less than ninety days. These deposits are denominated in SDRs or other currencies and are carried at tost not exceeding market value. Interest received on these instruments varies and is based on prevailing market rates.

Investments

The resources of the Administered Accounts are invested pending their use. Investments are made in debt securities, either directly or by participation in an investment pool. Investments are marked to market value on the last business day of the accounting period. The valuations of purchases and sales are made on the trade date basis. Investment income comprises interest earned on investments, realized and unrealized gains and losses on investments and currency valuation differences arising from exchange rate movements against the SDR.

Interest rate risk is managed by limiting the investment portfolio to a weighted average effective duration that does not exceed three years. Currency risk is minimized by investing in securities denominated in SDRs or in the constituent currencies of the SDR basket. Risk is further minimized by ensuring that the currency composition of the investment portfolio matches, as closely as possible, the currency composition of the SDR basket.

Transfers

Internal transfers of resources within the Fund are accounted for under the accrual method of accounting.

Foreign Currency Translation

Foreign currency transactions are recorded at the rate of exchange on the date of the transaction. At the balance sheet date, monetary assets and liabilities denominated in foreign currencies are reported using the closing exchange rates. Exchange differences arising on the settlement of transactions at rates different from those at the originating date of the transaction, and unrealized foreign exchange differences on unsettled foreign currency monetary assets and liabilities are included in the determination of net income.

Transfers to PRGF Subsidy Account

The difference between the interest earned by the PRGF Administered Accounts on the amount invested and the interest payable on the deposits of the administered account, net of any cost, is to be transferred to the Subsidy Account of the PRGF Trust.

Administrative Costs

The expenses of conducting the activities of the administered accounts are incurred and borne by the General Department of the IMF.

3. Investments

The maturities of the administered accounts investments are as follows:

Maturity as at April 3020012000
In thousands of SDRs
Less than 1 year107,8871,024
1–3 years84,051129,619
3–5 years3,2391,066
Over 5 years299250
Total195,476131,959

At April 30, the investments consisted of the following:

20012000
In thousands of SDRs
Debt securities90,476131,959
Fixed-term deposits105,000
Total195,476131,959

At April 30, investment income is comprised of:

20012000
In thousands of SDRs
Interest income14,61212,349
Realized losses, net(983)(95)
Unrealized gains (losses), net1,374(90)
Total15,00312,164

4. Deposits

The Administered Account Austria was established on December 27, 1988 for the administration of resources deposited in the account by the Austrian National Bank. Two deposits (one of SDR 60.0 million made on December 30, 1988 and one of SDR 50.0 million made on August 10, 1995) are to be repaid in ten equal semiannual installments beginning five and a half years after the date of each deposit and ending at the end of the tenth year after the date of each deposit. The deposits bear interest at a rate of ½ of 1 percent a year. The first deposit from Austria had been repaid in full.

The Administered Account Belgium was established on July 27, 1988 for the administration of resources deposited in the account by the National Bank of Belgium. Four deposits (SDR 30.0 million made on July 29, 1988; SDR 35.0 million made on December 30, 1988; SDR 35.0 million made on June 30, 1989; and SDR 80.0 million made on April 29, 1994) have an initial maturity of six months and are renewable by the IMF, on the same basis. The final maturity of each deposit, including renewals, will be ten years from the initial dates of the individual deposits. The deposits bear interest at a rate of ½ of 1 percent a year. In accordance with an addendum to the account, effective on July 24, 1998, the maturities of the first three deposits will be extended by the National Bank of Belgium, for further periods of six months, provided that the total maturity period of each deposit does not exceed five years. The deposits are invested by the IMF, and the IMF pays the National Bank of Belgium interest on each deposit at an annual rate of ½ of 1 percent. The difference between the interest paid to the National Bank of Belgium and the interest earned on the deposits (net of any cost to the IMF) was retained in the account and invested. As of January 31, 2001, the Ministry of Finance of Belgium authorized a transfer of SDR 8.2 million in net earnings to the PRGF-HIPC Trust. The first three deposits, totaling SDR 100 million, were paid in full as of April 30, 2001.

The Administered Account Botswana was established on July 1, 1994 for the administration of resources deposited in the account by the Bank of Botswana. The deposit, totaling SDR 6.9 million, is to be repaid in one installment ten years after the date of deposit. The deposit bears interest at a rate of 2 percent a year.

The Administered Account Chile was established on October 4, 1994 for the administration of resources deposited in the account by the Banco Central de Chile. The deposit, totaling SDR 15.0 million, was repaid on October 4, 1999.

The Administered Account Greece was established on November 30, 1988 for the administration of resources deposited in the account by the Bank of Greece. Two deposits of SDR 35.0 million each (December 15, 1988 and April 29, 1994) are to be repaid in ten equal semiannual installments beginning five and a half years after the date of deposit and will be completed at the end of the tenth year after the date of the deposits. The deposits bear interest at a rate of ½ of 1 percent a year. The first deposit from Greece has been repaid in full.

The Administered Account Indonesia was established on June 30, 1994 for the administration of resources deposited in the account by the Bank Indonesia. The deposit, totaling SDR 25.0 million, is to be repaid in one installment ten years after the date the deposit was made. The interest payable on the deposit is equivalent to that obtained for the investment of the deposit less 2 percent a year.

The Administered Account Islamic Republic of Iran was established on June 6, 1994 for the administration of resources deposited in the account by the Central Bank of the Islamic Republic of Iran (CBIRI). The CBIRI has made five annual deposits, each of SDR 1.0 million. All of the deposits will be repaid at the end often years after the date of the first deposit. Each deposit bears interest at a rate of ½ of 1 percent a year.

The Administered Account Portugal was established on May 16, 1994 for the administration of resources deposited in the account by the Banco de Portugal (BdP). The BdP has agreed to make six annual deposits, each of SDR 2.2 million. Each deposit is to be repaid in five equal annual installments beginning six years after the date of the deposit and will be completed at the end of the tenth year after the date of the deposit. Each deposit bears interest at a rate of ½ of 1 percent a year.

5. Associated Loons

The SFD has provided additional resources to support arrangements under the PRGF. Funds become available under an associated loan after a bilateral agreement between the SFD and the recipient country has been effected. Amounts denominated in SDRs, for disbursement to a recipient country under an associated loan, are placed by the SFD in the Saudi Fund for Development Special Account for disbursement by the IMF simultaneously with disbursements under PRGF arrangement. These loans are repayable in ten equal semiannual installments commencing not later than the end of the first six months of the sixth year, and are to be completed at the end of the tenth year after the date of disbursement. Interest on the outstanding balance is currently set at a rate of ½ of 1 percent a year.

The receipts and uses of resources for the Saudi Fund for Development Special Account were as follows:

20012000
In thousands of SDRs
Receipts of Resources
Cumulative transfers from the Saudi Fund for Development49,50049,500
Cumulative repayments of associated loans26,15016,250
Cumulative receipts of interest on associated loans1,6681,502
Accrued interest on associated loans4461
77,36267,313
Uses of Resources
Associated loans49,50049,500
Cumulative repayments to the Saudi Fund for Development26,15016,250
Cumulative payments of interest on transfers1,6681,502
Accrued interest on transfers4461
77,36267,313

PRGF-HIPC Trust and Related Accounts

Combined Balance Sheets as at April 30, 2001 and 2000

(In thousands of SDRs)
20012000
Assets
Cash and cash equivalents943,6521,012,081
Investments (Note 3)486,719221,135
Transfers receivable (Note 4)12,47510,757
Interest receivable10,7068,768
Total Assets1,453,5521,252,741
Liabilities and Resources
Borrowings (Note 5)477,159323,175
Other liabilities13
Interest payable860626
Total Liabilities478,019323,814
Resources975,533928,927
Total Liabilities and Resources1,453,5521,252,741
The accompanying notes are an integral part of these financial statements.
/s/ Eduard Brau/s/ Horst Köhler
TreasurerManaging Director

Combined Income Statements and Changes in Resources for the Years Ended April 30, 2001 and 2000

(In thousands of SDRs)
20012000
Balance, beginning of the year928,927158,412
Investment income (Note 3)64,30821,492
Interest expense(1,443)(1,078)
Other expenses(184)(40)
Operational income62,68120,374
Contributions received454,729552,319
Grants(262,808)(139,986)
Disbursements(91,376)(43,308)
163,226389,399
Transfers(116,620)381,116
Net changes in resources46,606770,515
Balance, end of the year975,533928,927
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.

Notes to the Financial Statements as at April 30, 2001 and 2000

1. Nature of Operations

The PRGF-HIPC Trust and Related Accounts comprise the PRGF-HIPC Trust Account, the Umbrella Account for HIPC Operations, and the Post-SCA-2 Administered Account. The PRGF-HIPC Trust Account comprises three subaccounts: the PRGF-HIPC, PRGF, and HIPC subaccounts. Combining balance sheets and income statements and changes in resources for each of these accounts are provided in Note 6. Transactions between the above accounts are eliminated on combination in the combined balance sheets and combined income statements and changes in resources.

PRGF-HIPC Trust (formerly the ESAF-HIPC Trust)

The name of the Trust for Special ESAF Operations for the Heavily Indebted Poor Countries and for Interim ESAF Subsidy Operations was changed to the Trust for Special PRGF Operations for the Heavily Indebted Poor Countries and for Interim PRGF Subsidy Operations (the PRGF-HIPC Trust) on November 22, 1999. The PRGF-HIPC Trust, for which the IMF is trustee, was established on February 4, 1997 to provide balance of payments assistance to low-income developing members by making grants or loans to eligible members for the purpose of reducing their external debt burden and for interim PRGF subsidy purposes. The resources of the PRGF-HIPC Trust are held separately from the assets of all other accounts of, or administered by, the IMF and may not be used to discharge liabilities or to meet losses incurred in the administration of other accounts.

The operations of the PRGF-HIPC Trust are conducted through the PRGF-HIPC Trust Account and the Umbrella Account for HIPC Operations.

PRGF-HIPC Trust Account (formerly the ESAF-HIPC Trust Account)

The resources of the PRGF-HIPC Trust Account consist of grant contributions, borrowings, and other types of investments made by contributors; amounts transferred by the IMF from the Special Disbursement Account and the General Resources Account; and net earnings from investment of resources held in the PRGF-HIPC Trust Account.

The PRGF-HIPC subaccount holds resources that can finance either HIPC operations or interim PRGF subsidy operations; the PRGF subaccount holds resources earmarked for interim PRGF subsidy operations, while the HIPC subaccount holds resources earmarked for HIPC” operations. PRGF-HIPC subaccount resources used to finance HIPC operations through the HIPC’ subaccount are repayable to the PRGF-HIPC’ subaccount and bear interest at a rate equal to the average return on investments in the Special Disbursement Account.

The resources held in the PRGF-HIPC’ Trust Account are to be used by the trustee to make grants or loans to eligible members that qualify for assistance under the HIPC Initiative and for subsidizing the interest rate on interim PRGF operations to PRGF-eligible members.

Umbrella Account for HIPC Operations

The Umbrella Account for HIPC’ Operations (“the Umbrella Account”) receives and administers the proceeds of grants or loans made to eligible members that quality for assistance under the terms of the PRGF-HIPC Trust. Within the Umbrella Account, resources received are administered through the establishment of subaccounts for each eligible member upon the approval of disbursements under the PRGF-HIPC” Trust. The resources of a subaccount of the Umbrella Account consist of (1) amounts disbursed from the PRGF-HIPC’ Trust Account as grants or loans for the benefit of a member, and (2) net earnings from investment of the resources held in the subaccount.

The resources held in a subaccount of the Umbrella Account are to be used to meet the member’s debt obligations to the IMF or accounts administered by it in accordance with the schedule agreed upon by the trustee and the member for the use of the proceeds of the PRGF-HIPC’ Trust disbursements.

Post-SCA-2 Administered Account

The Post-SCA-2 Administered Account, which is administered by the IMF on behalf of members, was established OP. December 8, 1999 for the temporary administration of resources transferred by members following the termination of the second Special Contingent Account (SCA-2), prior to the final disposition of those resources.

Resources received from a member’s cumulative SCA 2 contributions, together with the member’s pro rata share of investment returns, shall be transferred to the PRGF-HIPC’ Trust or to the member, in accordance with the member’s instructions. The assets held in the Post-SCA-2 Administered Account are held separately from the assets and property of all other accounts of, or administered by, the IMF and may not be used to discharge liabilities or to meet losses incurred in the administration of other accounts.

2. Summary of Significant Accounting Policies

Basis of Presenta

The financial statements of the IMF are prepared in accordance with International Accounting Standards (IAS). Specific accounting principles and disclosure practices are explained further below. The preparation of financial statements in conformity with IAS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

In financial year 2001, the IMF elected early adoption of IAS 39, Financial Instruments: Recognition and Measurement. The adoption of IAS 39 had no material effect on the PRGF HIPC’ Trust and Related Accounts’ financial statements.

Revenue and Expense Recognition

The financial statements are prepared on the accrual basis; accordingly, income is recognized as it is earned, and expenses are recorded as they are incurred.

Unit of Account

The financial statements are expressed in terms of SDRs. The value of the SDR is determined by the IMF each day by summing the values in U.S. dollars, based on market exchange rates, of the currencies in the SDR valuation basket. The IMF reviews the SDR valuation basket every five years. The latest review was completed in October 2000 and the new composition of the SDR valuation basket became effective from January 1, 2001. The value of the SDR in terms of U.S. dollars on the last business day prior to the change (December 29, 2000) was identical under both valuation baskets. The currencies in the basket as of April 30, 2001 and 2000 and their amounts were as follows:

Amount
CurrencyTo December 31,

2000
From January 1,

2001
Euro0.426
Euro (Germany)0.228
Euro (France)0.1239
Japanese yen27.221.0
Pound sterling0.1050.0984
U.S. dollar0.58210.577

As of April 30, 2001, one SDR was equal to 1.26579 U.S. dollars (one SDR was equal to 1.31921 U.S. dollars as of April 30, 2000).

Cash and Cash Equivalents

Cash and cash equivalents include short-term deposits with a maturity of less than ninety days. These deposits are denominated in SDRs or other currencies and are carried at cost not exceeding market value. Interest received on these instruments varies and is based on prevailing market rates.

Investments

The resources of the Trust are invested pending their use. The Trust invests in debt securities, either directly or by participation in an investment pool. Investments are valued at their market value on the last business day of the accounting period. Purchases are valued and reflected on the trade date basis and sales are based on the actual settlement date valuations. Investment income comprises interest earned on investments, realized and unrealized gains and losses on investments, and currency valuation differences arising from exchange rate movements against the SDR.

Interest rate risk is managed by limiting the investment portfolio to a weighted-average effective duration that does not exceed three years. Currency risk is minimized by investing in securities denominated in SDRs or in the constituent currencies of the SDR basket. Regular portfolio rebalancing to ensure that the currency composition of the investment portfolio matches, as closely as possible, the currency composition of the SDR basket, further minimizes risk.

Contributions

Bilateral contributions are reflected as increases in resources alter the achievement of specified conditions and are subject to bilateral agreements stipulating how the resources are to be used.

Transfers

Internal transfers of resources within the Fund are accounted for under the accrual method of accounting.

Foreign Currency Translation

Foreign currency transactions are recorded at the rate of exchange on the date of the transaction. At the balance sheet date, monetary assets and liabilities denominated in foreign currencies are reported using the closing exchange rates. Exchange differences arising on the settlement of transactions at rates different from those at the originating date of the transaction and unrealized foreign exchange differences on unsettled foreign currency monetary assets and liabilities are included in the determination of net income.

Administrative Costs

The expenses of conducting activities of the Trust and related accounts are incurred and borne by the General Department of the IMF.

3. Investments

The maturities of the investments in debt securities are as follows:

Maturity as at April 3020012000
In thousands of SDRs
Less than 1 year247,8511,017
1–3 years229,222217,907
3–5 years8,8321,791
Over 5 years814420
Total486,719221,135

At April 30, the investments consisted of the following:

20012000
In thousands of SDRs
Debt securities241,310221,135
Fixed term deposits245,409
Total486,719221,135

At April 30, investment income comprised:

20012000
In thousands of SDRs
Interest income62,76821,698
Realized losses, net(1,759)(54)
Unrealized gains (losses), net3,411151
Exchange rate losses, net(112)1
Total64,30821,492

4. Transfers Receivable and Payable

At April 30, 2001, the HIPC subaccount had transfers payable to the PRGF-HIPC subaccount arising from past disbursements to the Umbrella Account under the HIPC’ initiative in the amount of SDR 214.2 million, including; interest (SDR 200.7 million at April 30, 2000). Interest payable between subaccounts is eliminated on combination. At April 30, 2001, there was a transfer due from the Special Disbursement Account amounting to SDR 12.5 million (there was no transfer due at April 30, 2000). At April 30, 2001, there was no transfer due from the General Resources Account (SDR 10.8 million at April 30, 2000).

5. Borrowings

The Trust borrows on such terms and conditions as agreed between the Trust and the lenders. Interest rates on borrowings at 2001 and 2000 varied between 0 percent and 2 percent a year. The principal amounts of the borrowings are repayable in one installment at their maturity dates. Scheduled repayments of borrowings are summarized below:

Financial Year

Ending April 30
In thousands of SDRs
200214,607
2003
2004
200515,000
2006 and beyond447,552
Total477,159

6. Combining Balance Sheets and Income Statements and Changes in Resources

The balance sheets and income statements and changes in resources for each of the accounts and subaccounts in the PRGF-HIPC Trust and Related Accounts are presented on the following two pages:

Note 6 Combining Balance Sheets as at April 30, 2001 and 2000

(In thousands of SDRs)
20012000
PRGF HIPC Trust Account

subaccount
Umbrella

Account

for HIPC

Operations
Post-SCA-2

Administered

Account
Combined

Total
PRGF-HIPC

Trust

Account
Umbrella

Account

for HIPC

Operations
Post-SCA-2

Administered

Account1
Combined

Total
PRGF-HIPCPRGFHIPCCombined
Assets
Cash and cash equivalents536,9066,3903,863547,159304,35692,137943,652600,736157,131254,2141,012,081
Investments444,1337,543451,67635,043486,719221,135221,135
Transfers receivable12,47512,47512,47510,75710,757
Transfers to and from subaccounts214,248(214,248)
Interest receivable5,34670985,5144,0111,18110,7062,2373,6942,8378,768
Total Assets1,213,10814,003(210,287)1,016,824343,41093,3181,453,552834,865160,825257,0511,252,741
Liabilities and Resources
Borrowings477,159477,159477,159323,175323,175
Other liabilities1313
Interest payable860860860626626
Total Liabilities478,019478,019478,019323,814323,814
Resources735,08914,003(210,287)538,805343,41093,318975,533511,051160,825257,051928,927
Total Liabilities and Resources1,213,10814,003(210,287)1,016,824343,41093,3181,453,552834,865160,825257,0511,252,741

The Post SCA-2 Administered Account was established on December 8, 1999.

The Post SCA-2 Administered Account was established on December 8, 1999.

Combining Income Statements and Changes in Resources for the Years Ended April 30, 2001 and 2000

(In thousands of SDRs)
20012000
PRGF HIPC Trust Account

subaccount
Umbrella

Account

for HIPC

Operations
Post-SCA-2

Administered

Account
Combined

Total
PRGF-HIPC

Trust

Account
Umbrella

Account

for HIPC

Operations
Post-SCA-2

Administered

Account1
Combined

Total
PRGF-HIPCPRGFHIPCCombined
Balance, beginning of the year491,0067,31012,735511,051160,825257,051928,92799,65158,761158,412
Investment income52,6595515,60145,268211,1537,88764,30811,7345,3864,37221,492
Interest expense(1,443)(13,543)(1,443)2(1,443)(1,078)(1,078)
Other expenses(179)(5)(184)(184)(40)(40)
Operational income/(loss)51,037546(7,942)43,64111,1537,88762,68110,6165,3864,37220,374
Contributions received138,0466,14747,728191,921262,808454,729412,333139,986552,319
Grants(262,808)(262,808)(262,808)(139,986)(139,986)
Disbursements(91,376)(91,376)(43,308)(43,308)
189,0836,693(223,022)(27,246)182,5857,887163,226282,963102,0644,372389,399
Transfers55,00055,000(171,620)(116,620)128,437252,679381,116
Net changes in resources244,0836,693(223,022)27,754182,585(163,733)46,606411,400102,064257,051770,515
Balance, end of the year735,08914,003(210,287)538,805343,41093,318975,533511,051160,825257,051928,927

The Post-SCA-2 Administered Account was established on December 8, 1999; the FY 2000 figures presented are for the period December 8, 1999 through April 30, 2000.

Interest payable between subaccounts amounting to SDR 13.5 million (SDR 6.7 million at April 30, 2000) has been eliminated in the combined totals.

The Post-SCA-2 Administered Account was established on December 8, 1999; the FY 2000 figures presented are for the period December 8, 1999 through April 30, 2000.

Interest payable between subaccounts amounting to SDR 13.5 million (SDR 6.7 million at April 30, 2000) has been eliminated in the combined totals.

Schedule 1 Post-SCA-2 Administered Account Holdings, Interest and Transfers as at April 30, 2001 and 2000

(In thousands of SDRs)
MemberBalance

Beginning

of the Year
Interest

Earned
Transfers

to Member
Transfers to

PRGF-HIPC

Trust
Balance

at end

of the Year
Algeria7,690322(7,600)412
Argentina19,89090420,794
Austria9,715266(9,981)
Brazil10,13846010,598
Brunei Darussalam52355
Croatia, Republic of52723(519)31
Czech Republic47(47)
Dominican Republic91542957
Egypt1,75110(1,761)
Estonia, Republic of1397146
Fiji1979206
Finland5,905229(5,812)322
Gabon43820458
Hungary9,385266(414)(9,237)
India390(390)
Indonesia4,92846(4,974)
Italy43,087221(43,308)
Jordan1,040471,087
Kuwait4,26243(4,305)
Latvia, Republic of27313(269)17
Malaysia7,4823397,821
Mauritius
Morocco2,22214(2,236)
New Zealand1,218(1,218)
Oman1,074491,123
Pakistan4,73430(4,764)
Peru
Poland, Republic of7,18737(150)(7,074)
Russian Federation10,247348(10,595)
Saudi Arabia16,978710(16,710)978
Singapore4,111184(4,046)249
Spain26,348827(1,175)(26,000)
Sri Lanka12(12)
Sweden10,76548911,254
Thailand6,226253(6,129)350
Tonga26127
Trinidad & Tobago2,2331012,334
Tunisia2,40098(2,362)136
United Arab Emirates5,2132375,450
Vanuatu44246
Venezuela27,2311,23628,467
Vietnam5311(532)
Total at April 30, 2001257,0517,887(1,7861)(169,834)93,318
Total at April 30, 2000296,72014,372(34)(44,007)257,051

Transferred to the Post-SCA-2 Administered Account from the SCA-2 Account during FY 2000.

Transferred to the Post-SCA-2 Administered Account from the SCA-2 Account during FY 2000.

Schedule 2 PRGF-HIPC Trust Account Contributions and Transfers as at April 30, 2001 and 2000

(In thousands of SDRs)
Subaccount
PRGF-HIPCPRGFHIPCCombined
Year ended April 30, 2000
Australia9,1899,189
Bangladesh1,1631,163
Barbados250250
Belize2020
Cambodia2727
Canada32,92932,929
China13,13213,132
Cyprus544544
Denmark6,1206,120
France38,69638,696
Greece2,2002,200
Iceland9393
Ireland3,9373,937
Israel1,1891,189
Jamaica1,8001,800
Japan20,24520,245
Korea10,62510,625
Luxembourg488488
Malta706706
Mauritius4040
Netherlands3,3453,345
Norway7,2527,252
Philippines4,5004,500
Portugal4,4304,430
Samoa33
San Marino, Republic of3232
Slovak Republic2,6692,669
Slovenia, Republic of311311
South Africa895895
Swaziland2020
United Kingdom23,55123,551
United States221,932221,932
177,8673,345231,121412,333
Transfers from SDA69,26769,267
Transfers from GRA59,17059,170
128,437128,437
306,3043,345231,121540,770
Year ended April 30, 2001
Australia3,9103,910
Austria9,9819,981
Belgium12,20812,208
Belize2020
Denmark2,3742,374
Egypt3737
France17,19617,196
Iceland366366
India390390
Indonesia124124
Italy43,30943,309
Japan16,35616,356
Kuwait108108
Latvia, Republic of269269
Mexico8,0008,000
Morocco4949
Netherlands6,1476,147
New Zealand1,1581,158
Norway1,1441,144
Pakistan105105
Poland, Republic of877877
Russian Federation10,20010,200
South Africa4,0004,000
Spain16,55016,550
Sri Lanka1212
Switzerland3,1843,184
United Kingdom33,83733,837
Vietnam1010
138,0466,14747,728191,921
Transfers from SDA55,00055,000
193,0466,14747,728246,921

Schedule 3 PRGF-HIPC Trust Account Borrowings as at April 30, 2001 and 2000

(In thousands of SDRs)
Amount
Date of ArrangementMaturity1Interest Rate

(in percent)
20012000
PRGF-HIPC subaccount
SDR-denominated
April 30, 1997April 29, 20022.014,60714,607
May 30, 1997May 29, 20070.51,0001,000
May 30, 1998May 29, 20070.51,0001,000
June 29, 1998June 28, 20082.015,00015,000
November 20, 1998November 19, 20082.010,00010,000
May 30, 1999May 29, 20070.51,0001,000
August 24, 1999August 23, 20092.05,0005,000
August 30, 1999August 29, 20092.010,00010,000
October 4, 1999October 3, 20040.515,00015,000
January 31, 2000January 30, 20101.56,1446,144
February 24, 2000February 23, 20200.05,6645,664
March 31, 2000December 30, 20180.031,37031,370
April 24, 2000December 23, 20180.0789789
May 17, 2000May 16, 20100.5982
May 24, 2000December 31, 20180.0523
May 27, 2000December 31, 20180.0750
May 30, 2000May 29, 20070.51,000
June 12, 2000June 11, 20200.07,074
June 16, 2000December 31, 20180.01,724
June 22, 2000June 21, 20200.02,187
June 22, 2000June 21, 20200.04,659
July 18, 2000December 17, 20180.04,850
July 25, 2000December 24, 20180.04,196
August 23, 2000August 22, 20100.5100
August 30, 2000August 29, 20102.010,000
December 8, 2000December 7, 20180.09,237
February 27, 2001February 26, 20110.05,440
February 28, 2001December 30, 20180.05,812
March 14, 2001March 13, 20200.06,128
March 20, 2001March 19, 20210.52,362
March 27, 2001December 26, 20180.016,710
March 27, 2001December 26, 20180.53,000
March 27, 2001December 26, 20180.549,820
March 27, 2001March 26, 20210.07,600
April 9, 2001January 8, 20190.0519
April 13, 2001January 12, 20190.51,500
April 24, 2001April 23, 20110.04,046
266,793116,574
Currency-denominated
February 11, 2000February 10, 20100.0210,3662206,601
Total477,159323,175

The principal amounts of all the borrowings are payable in one installment at their maturity dates.

The principal amount of the borrowing is for euro 300 million.

The principal amounts of all the borrowings are payable in one installment at their maturity dates.

The principal amount of the borrowing is for euro 300 million.

Schedule 4 Umbrella Account for HIPC Operations as at April 30, 2001 and 2000 Grants, Interest and Disbursements

(In thousands of SDRs)
Opening

Balance
Grants from

PRGF-HIPC

Trust Account
Interest

Earned
DisbursementsBalance
Year ended April 30, 2000
Bolivia14,9054247,4237,906
Guyana25,5617167,41518,862
Mozambique95,4832,75814,81883,423
Tanzania13,3423313,375
Uganda43,8565,6001,45513,65237,259
58,761139,9865,38643,308160,825
Year ended April 30, 2001
Benin3,700772,975802
Bolivia7,9062175,5392,584
Burkina Faso17,8006143,71814,696
Cameroon2,240281,837431
Gambia, The801972
Guinea2,424392282,235
Guinea-Bissau5418158391
Guyana18,8626,1408897,25118,640
Madagascar67766776
Malawi2,314331,2031,144
Mali11,4903341,58610,238
Mauritania9,922754,9885,009
Mozambique83,4233,28522,97663,732
Niger4307437
Rwanda6,762953,1493,708
Senegal4,777471,7093,115
Tanzania13,37513,34031413,60913,420
Uganda37,25962,9712,90819,76483,374
Zambia117,2002,176119,376
160,825262,80811,15391,376343,410

Other Administered Accounts

Balance Sheets as at April 30, 2001 and 2000

Administered

Account Japan
Administered

Account for

Selected Fund

Activities—Japan
Framework

Administered

Account

for Technical

Assistance

Activities
Administered

Account—

Spain
Administered

Account for

Rwanda
Supplementary

Financing Facility

Subsidy Account
20012000200120002001200020012001200020012000
(In thousands of U.S. dollars)(In thousands of SDRs)
Assets
Cash and cash equivalents114,184107,40514,58018,8544,5394,2012882,3192,319
Interest receivable3432424
Total Assets114,184107,48914,58018,8544,5394,2012912,3432,343
Resources
Total Resourees114,184107,43914,58018,8544,5394,2012912,3432,343
The accompanying notes are an integral part of these financial statements.
/s/ Eduard Brau/s/ Horst Köhler
TreasurerManaging Director

Income Statements and Changes in Resources for the Years Ended April 30, 2001 and 2000

Administered

Account Japan
Administered

Account for

Selected Fund

Activities—Japan
Administered

Account

for Technical

Assistance

Activities
Administered

Account—

Spain
Administered

Account for

Rwanda
Supplementary

Financing Facility

Subsidy Account
20012000200120002001200020012001200020012000
(In thousands of U.S. dollars)(In thousands of SDRs)
Balance, beginning of the year107,439101,89818,85425,9974,2014,7982914842,3432,259
Income earned on investments6,7455,5417181,1422571867261310484
Contributions received15,11914,0423,8823,240506,329
Payments to and on behalf
of beneficiaries(20,111)(22,327)(3,801)(4,023)(506,401)(297)(206)
6,7455,541(4,274)(7,143)338(597)(291)(193)(104)(84)
Transfers to the Special
Disbursement Account (Note 4)(104)
Net changes in resources6,7455,541(4,274)(7,143)338(597)(291)(193)(104)84
Balance, end of the year114,184107,43914,58018,8544,5394,2012912,3432,343
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.

Notes to the Financial Statements as at April 30, 2001 and 2000

1. Nature of Operations

At the request of members, the IMF has established special purpose accounts to administer contributed resources and to perform financial and technical services consistent with the purposes of the IMF. The assets of each account and each subaccount are separate from the assets of all other accounts of, or administered by, the IMF and are not to be used to discharge liabilities or to meet losses incurred in the administration of other accounts.

Administered Account Japan

At the request of japan, the IMF established an account on March 3, 1989 to administer resources, made available by Japan or other countries with Japan’s concurrence, that are to be used to assist certain members with overdue obligations to the IMF. The resources of the account are to be disbursed in amounts specified by Japan and to members designated by Japan.

Administered Account for Selected Fund Activities—Japan

At the request of Japan, the IMF established the Administered Technical Assistance Account—Japan on March 19, 1990 to administer resources contributed by Japan to finance technical assistance to member countries. On July 21, 1997, the account was renamed the Administered Account for Selected Fund Activities—Japan and amended to include the administration of resources contributed by Japan in support of the IMF’s Regional Office for Asia and the Pacific (OAP). The resources of the account designated for technical assistance activities are used with the approval of Japan and include the provision of scholarships. The resources designated for the OAP are used as agreed between Japan and the IMF for certain activities of the IMF with respect to Asia and the Pacific through the OAP. Disbursements can also be made from the account to the General Resources Account to reimburse the IMF for qualifying technical assistance projects and OAP expenses.

Framework Administered Account for Technical Assistance Activities

The Framework Administered Account for Technical Assistance Activities (“the Framework Account”) was established by the IMF on April 3, 1995 to receive and administer contributed resources that are to be used to finance technical assistance consistent with the purposes of the IMF. The financing of technical assistance activities is implemented through the establishment and operation of subaccounts within the Framework Account.

Resources are to be used in accordance with the written understandings between the contributor and the Managing Director. Disbursements can also be made from the Framework Account to the General Resources Account to reimburse the IMF for its costs incurred on behalf of technical assistance activities financed by resources from the Framework Account.

Subaccount for Japan Advanced Scholarship Program

At the request of Japan, this subaccount was established on June 6, 1995 to finance the cost of studies and training of nationals of member countries in macroeconomics and related subjects at selected universities and institutions. The scholarship program focuses primarily on the training of nationals of Asian member countries, including Japan.

Rwanda—Macroeconomic Management Capacity Subaccount

At the request of Rwanda, this subaccount was established on December 20, 1995 to finance technical assistance to rehabilitate and strengthen Rwanda’s macroeconomic management capacity.

Australia—IMF Scholarship Program for Asia Subaccount

At the request of Australia, this subaccount was established on June 5, 1996 to finance the cost of studies and training of government and central bank officials in macroeconomic management so as to enable them to contribute to their countries’ achievement of sustainable economic growth and development. The program focuses primarily on the training of nationals of Asian countries.

Switzerland Technical Assistance Subaccount

At the request of Switzerland, this subaccount was established on August 27, 1996 to finance the costs of technical assistance activities of the IMF that consist of policy advice and training in macroeconomic management.

French Technical Assistance Subaccount

At the request of France, this subaccount was established on September 30, 1996 to cofinance the costs of training in economic fields for nationals of certain member countries.

Denmark Technical Assistance Subaccount

At the request of Denmark, this subaccount was established on August 25, 1998 to finance the costs of technical assistance activities of the IMF that consist of advising on policy and administrative reforms in the fiscal, monetary, and related statistical fields.

Australia Technical Assistance Subaccount

At the request of Australia, this subaccount was established on March 7, 2000 to finance the costs of technical assistance activities of the IMF that consist of advising on the design of policy and administrative reforms in the fiscal, monetary and related statistical fields, as well as to provide training in the formulation and implementation of macroeconomic and financial policies.

The Netherlands Technical Assistance Subaccount

At the request of the Netherlands, this subaccount was established on July 27, 2000 to finance projects that seek to enhance the capacity of the members to formulate and implement policies in the macroeconomic, fiscal, monetary, financial, and related statistical fields, including training programs and projects that strengthen the legal and administrative framework in these core areas.

Administered Account—Spain

At the request of Spain, the IMF established an account on March 20, 2001 to receive and disburse resources up to $1 billion contributed by Spain for Argentina. The resources of this account are to be used to assist Argentina in the implementation of the adjustment program supported by the IMF under the Stand-By Arrangement for Argentina approved on March 10, 2000 and augmented on January 12, 2001 (“the Stand-By Arrangement”).

Administered Account for Rwanda

At the request of the Netherlands, Sweden, and the United States (“the donor countries’”), the IMF established an account on October 27, 1995 to administer resources contributed by the donor countries to provide grants to Rwanda. These grants are to be used for reimbursing the service charge and reducing, to the equivalent of a rate of ½ of 1 percent a year, the rate of the quarterly charges payable by Rwanda on its use of the IMF’s financial resources under the Compensatory and Contingency Financing Facility (CCFF). The account has been terminated on November 30, 2000 and the balance transferred to donor countries, in proportion to their contribution. The distribution of the final accrued interest was made in February 2001 when quarterly interest on SDR accounts was paid.

Trust Fund

In addition to the aforementioned accounts, the IMF is also the trustee of the Trust Fund, which is in liquidation. The Trust Fund was established in 1976 to provide balance of payments assistance on concessional terms to eligible members that qualify for assistance.

In 1980, the IMF, as trustee, decided that, upon the completion of the final loan disbursements, the Trust Fund would be terminated as of April 30, 1981, and after that date, the activities of the Trust Fund have been confined to the conclusion of its affairs. The final Trust Fund loan settlement was due on March 31, 1991. As of April 30, 2001 and 2000, the Trust Fund had no assets other than loans receivable of SDR 88.8 million and SDR 88.9 million, respectively. Interest continues to be charged on the outstanding balances, all of which is overdue, and all interest recognition is deferred. Cash receipts on these loans are to be transferred to the Special Disbursement Account.

Loans

Loans in the Trust Fund are valued at historical cost. Allowances for loan losses would be established if and when the Trust expects to incur a loss; no losses have been incurred in the past, and it is the current expectation that no losses will be incurred in the future.

An overdue member would have to become current in the IMF and in the Trust Fund before access to credit could be restored and consequently no loss is expected on the loans. The member’s resources or other resources would be used to reimburse the Trust Fund.

Deferred Income

The recognition of interest income and special charges on the Trust Fund loans outstanding to members with obligations overdue six months or more is being deferred and is recognized as income only when paid, unless the member has remained current in settling charges when due.

Overdue Obligations

At April 30, 2001 and 2000, three members with obligations to the Trust Fund were six months or more overdue in discharging their obligations to the Trust Fund. The recognition of interest income on the loans outstanding to these members is being deferred. At April 30, 2001, total deferred income amounted to SDR 27.1 million (SDR 26.7 million at April 30, 2000). Overdue loan repayments and interest and special charges due from these members were as follows:

LoansInterest and

Special Charges
2001200020012000
In millions of SDRs
Total overdue88.888.927.126.7
Overdue six months or more88.888.926.926.5
Overdue three years or more88.888.925.825.4

The type and duration of the arrears of these members at April 30, 2001 were as follows:

MemberLoansInterest

and Special

Charges
TotalLongest Overdue

Obligation
In millions of SDRs
Liberia23.17.030.1April 1985
Somalia6.51.47.9July 1987
Sudan59.218.777.9June 1985
Total88.827.1115.9

Transfer of Resources

The resources of the Trust Fund held on April 30, 1981 or received thereafter have been used to pay interest and principal when due on loan obligations and to make transfers to the Special Disbursement Account, since the activities of the Trust are limited to the conclusion of its affairs.

Supplementary Financing Facility Subsidy Account

The Supplementary Financing Facility Subsidy Account (“the Subsidy Account”), which is administered by the IMF, was established in December 1980 to assist low-income developing country members to meet the cost of using resources made available through the IMF’s Supplementary Financing Facility and under the policy on exceptional use. All repurchases due under these policies were scheduled for completion by January 31, 1991, and the final subsidy payments were approved in July 1991. However, two members (Liberia and Sudani, overdue in the payment of charges, remain eligible to receive previously approved subsidy payments when their overdue charges are settled. Accordingly, the account remains in operation and has retained amounts for payment to these members after the overdue charges are paid.

2. Summary of Significant Accounting Policies

Basis of Presentation

The financial statements of the IMF are prepared in accordance with International Accounting Standards (IAS). Specific accounting principles and disclosure practices are explained further below. The preparation of financial statements in conformity with IAS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

In financial year 2001, the IMF elected early adoption of IAS 39, Financial Instruments: Recognition and Measurement. The adoption of IAS 39 had no material effect on the Other Administered Accounts’ financial statements.

Unit of Account

Administered Account Japan, Administered Account for Selected Fund Activities—Japan, Framework Administered Account for Technical Assistance Activities, and Administered Account—Spain

These accounts are expressed in U.S. dollars. All transactions and operations of these accounts, including the transfers to and from the accounts, are denominated in U.S. dollars, except for transactions and operations in respect of the OAP, which are denominated in Japanese yen, or transactions in other currencies as agreed between Japan and the IMF. Contributions denominated in other currencies are converted into U.S. dollars upon receipt of the funds.

Administered Account for Rwanda, Trust Fund, and Supplementary Financing Facility Subsidy Account

These accounts are expressed in terms of SDRs. The value of the SDR is determined by the IMF each day by summing the values in U.S. dollars, based on market exchange rates, of the currencies in the basket. The IMF reviews the SDR valuation basket every five years. The latest review was completed in October 2000 and the composition of the SDR valuation basket became effective from January 1, 2001. The value of the SDR in terms of U.S. dollars on the last business day prior to the change (December 29, 2000) was identical under both valuation baskets. The method of valuing the SDR has been revised following the introduction of the euro as the common currency of a number of members. The currencies in the basket as of April 30, 2001 and 2000 and their amounts were as follows:

Amount
CurrencyTo December 31,

2000
From January 1,

2001
Euro0.426
Euro (Germany)0.228
Euro (France)0.1239
Japanese yen27.221.0
Pound sterling0.1050.0984
U.S. dollar0.58210.577

As of April 30, 2001, one SDR was equal to 1.26579 U.S. dollars (one SDR was equal to 1.31921 U.S. dollars as of April 30, 2000).

Transfers to and disbursements from the Administered Account for Rwanda are made in U.S. dollars or in other freely usable currencies. Transactions and operations of the accounts are denominated in SDRs. Contributions denominated in other currencies are converted into SDRs upon receipt of the funds.

Revenue and Expense Recognition

The accounts are maintained on the accrual basis; accordingly, income is recognized as it is earned and expenses are recorded as they are incurred.

Cash and Cash Equivalents

Cash and cash equivalents include short-term deposits with a maturity of less than ninety days. These deposits are denominated in SDRs or other currencies and are carried at cost not exceeding market value. Interest on these instruments varies and is based on prevailing market rates.

Contributions

Bilateral contributions are reflected as increases in resources after the achievement of specified conditions and are subject to bilateral agreements stipulating how the resources are to be used.

Payments to and on behalf of beneficiaries

Payments to and on behalf of beneficiaries are recognized when the specified conditions in the respective agreements are achieved.

Transfers

Internal transfers of resources within the Fund are accounted for under the accrual method of accounting.

Foreign Currency Translation

Foreign currency transactions are recorded at the rate of exchange on the date of the transaction. At the balance sheet date, monetary assets and liabilities denominated in foreign currencies are reported using the closing exchange rates. Exchange differences arising on the settlement of transaction at rates different from those at the date of the transaction and unrealized foreign exchange differences on unsettled foreign currency monetary assets and liabilities are included in the determination of net income.

Administrative Expenses

The expenses of conducting the activities of the Other Administered Accounts and the Trust Fund are incurred and borne by the General Department of the IMF. Following the termination of the Trust Fund as of April 30, 1981, residual administrative costs have been absorbed by the General Resources Account of the IMF. To help defray the expenses incurred by the Fund in the administration of the Administered Account for Selected Fund Activities—Japan and the Framework Administered Account for Technical Assistance Activities, reimbursement equal to 13 percent of the expenses financed from the accounts is paid to the Fund from these accounts. The Administered Account—Spain is to pay the IMF an annual fee of $40,000 for administrative costs incurred. This amount is deducted from investment earnings. As at April 30, 2001 the administrative costs for Administered Account for Selected Fund Activities—Japan amounted to S2.1 million ($2.4 million at April 30, 2000), and for Framework Administered Account for Technical Assistance Activities $0.48 million ($0.45 million at April 30, 2000). These amounts are included in Payments to and on behalf of beneficiaries on the Income Statements and Changes in Resources.

Cumulative Contributions and Disbursements

The cumulative contributions and disbursements from these administered accounts are as follows:

April 30, 2001April 30, 2000
AccountCumulative

Contributions
Cumulative

Disbursements1
Cumulative

Contributions
Cumulative

Disbursements1
(In millions of U.S. dollars)
Administered
Account Japan135.272.5135.272.5
Administered Account
for Selected Fund
Activities—Japan153.6145.8138.5125.7
Technical Assistance141.2134.2128.6116.5
Scholarships8.07.36.66.1
Office of Asia and Pacific4.44.33.33.1
Framework Administered
Account for Technical
Assistance Activities18.915.315.011.5
Subaccount for Japan
Advanced Scholarship
Program7.25.85.74.0
Rwanda-Macrocconomic
Management Capacity
Subaccount1.51.61.51.6
Australia—IMF Scholarship
Program for Asia
Subaccount1.41.40.80.9
Switzerland Technical
Assistance Subaccount6.85.35.84.3
French Technical
Assistance Subaccount0.680.380.540.31
Denmark Technical
Assistance Subaccount0.470.470.470.45
Australia Technical
Assistance Subaccount0.270.000.150.00
The Netherlands Technical
Assistance Subaccount0.600.41
Administered Account Spain506.33506.40
(In millions of SDRs)
Administered Account
for Rwanda1.541.701.541.40

Disbursements had been made from resources to these accounts as well as from interest earned on these resources.

Disbursements had been made from resources to these accounts as well as from interest earned on these resources.

3. Transfer of Resources

Resources of the Supplementary Financing Facility Subsidy Account in excess of the remaining subsidy payments are to be transferred to the Special Disbursement Account. At April 30, 2001 and 2000, subsidy payments totaling SDR 2.2 million had not been made to Liberia and Sudan and were being held pending the payment of overdue charges by these members.

4. Accounts Termination

Administered Account Japan

The account can be terminated by the IMF or by Japan. Any remaining resources in the account at termination are to be returned to Japan.

Administered Account for Selected Fund Activities—Japan

The account can be terminated by the IMF or by Japan. Any resources that may remain in the account at termination, net of accrued liabilities under technical assistance projects or in respect of the OAP, are to be returned to Japan.

Framework Administered Account for Technical Assistance Activities

The Framework Account or any subaccount thereof may be terminated by the IMF at any time. The termination of the Framework Account shall terminate each subaccount thereof. A subaccount may also be terminated by the contributor of the resources to the subaccount. Termination shall be effective on the date that the IMF or the contributor, as the case may be, receives notice of termination. Any balances, net of the continuing liabilities and commitments under the activities financed, that may remain in a subaccount upon its termination are to be returned to the contributor.

Administered Account—Spain

The account will be terminated when Argentina repays all the resources that were distributed, or at an earlier time as agreed between Spain and the IMF. Any remaining resources in the account at termination are to be returned to Spain.

Administered Account for Rwanda

The account can be terminated at any time by the IMF or by unanimous agreement of the donor countries. The account shall, in any case, be terminated by the IMF when Rwanda’s financial obligations to the IMF under the CCFF have been fully discharged or when the resources of the account have been exhausted, whichever is earlier. Any balance in the account at termination shall be transferred to the donor countries, in proportion to their contribution, or to Rwanda, if so instructed.

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